Investors with small portfolios are not getting enough advice, according to a new study.
Research conducted for the Ontario Securities Commission (OSC) has found that investors with small- and mid-sized portfolios of $50,000 or less are receiving insufficient information about financial planning from their advisers. The conclusion is based on findings of a cross-Canada online survey of about 3,000 people who rely on financial advisers.
In the survey, 43% of respondents said their adviser did not provide information about financial concepts, and the vast majority said they got no advice about debt management, tax and estate planning, or planning for a family member such as a dependent child.
The OSC report says that this pattern is consistent across most categories of advised investors but was most pronounced for respondents with portfolios worth $50,000 or less. In a news release, the OSC said the survey shows significant shortfalls in the scope, timeliness and effectiveness of educational information that advised investors receive.
The survey of investors with advisers was conducted in English and French by Innovative Research Group on behalf of the OSC's Investor Advisory Panel. According to the polling industry, online surveys cannot be assigned a margin of error because they do not randomly sample the population.
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