With over two million Do-It-Yourself (DIY) accounts opened in Canada in 2020, and increased market volatility, the Investment Industry Regulatory Organization of Canada (IIROC) today re-issued its Investor Bulletin to help DIY investors make more informed decisions to protect themselves.
According to Investor Economics, a financial services research firm, Canadians opened more than 2.3 million gross new accounts in Canada between January and December 2020 -- up from 846,000 in all of 2019.
Since the start of the pandemic, there has also been a significant surge in inquiries and complaints to IIROC's Complaints & Inquiries team. Between March 2020 and January 2021, DIY investors' inquiries and complaints are up by 270% compared to the same period in 2019.
In response, IIROC, the pan-Canadian regulator, has reissued its Investor Bulletin - "Is a DIY account right for me?"
"We urge investors to be careful about where they are getting their investing information, as many sources are unregulated and may contain inaccurate information," said Lucy Becker, IIROC's Vice-President of Public Affairs and Member Education Services. "This may lead to misinterpreting investment research and subsequently betting the farm."
DIY investing is appropriate for those who have ample knowledge and information – and who are comfortable making their own decisions, without financial advice. Capital markets are affected by numerous factors that may result in greater volatility at times – leading to gains as well as losses.
Last week IIROC, together with the Canadian Securities Administrators, also issued a joint statement urging investors to be careful about sources of information they use when making investment decisions.
