We use data and applied research methods to enable evidence-based decision-making within the OSC.
And we identify and solve behavioural challenges through scientific insights and experimentation.
We use data and applied research methods to enable evidence-based decision-making within the OSC.
And we identify and solve behavioural challenges through scientific insights and experimentation
What are Behavioural Insights?
When making decisions, people can often be limited by their time, knowledge and willpower. To compensate for these limitations, people use shortcuts in their decision making which can lead to cognitive biases. Consequently, this can lead to people to do things that are not in their best interest.
Behavioural insights are a powerful set of tools that allow us to make appropriate and effective regulations and programs that reflect how people actually behave and process information. These regulations and programs are used to address issues in capital markets and improve outcomes for investors.
The use of behavioural insights in securities regulation and by other government and regulatory bodies has grown significantly in recent years.
At the OSC, the Investor Office Research and Behavioural Insights Team (IORBIT) is building the OSC’s behavioural insight capacity and identifying opportunities to use it in OSC policy development and operational processes.
What are Behavioural Insights?
When making decisions, people can often be limited by their time, knowledge and willpower. To compensate for these limitations, people use shortcuts in their decision making which can lead to cognitive biases. Consequently, this can lead to people to do things that are not in their best interest.
Behavioural insights are a powerful set of tools that allow us to make appropriate and effective regulations and programs that reflect how people actually behave and process information. These regulations and programs are used to address issues in capital markets and improve outcomes for investors.
The use of behavioural insights in securities regulation and by other government and regulatory bodies has grown significantly in recent years.
At the OSC, the Investor Office Research and Behavioural Insights Team (IORBIT) is building the OSC’s behavioural insight capacity and identifying opportunities to use it in OSC policy development and operational processes.
FEBRUARY 2024
Digital Engagement Practices: Dark Patterns in Retail Investing
This study examined the use of dark patterns and other digital engagement practices and how those techniques are being used in some investment contexts. Dark patterns are digital engagement practices that use online interfaces to coerce, steer, and/or deceive users into making decisions that benefit a business but may not align with an investor’s best interests. The study found the prevalent use of dark patterns on digital investing platforms, including concerning techniques that: disguise the cost of investing; obtain personal information without informed consent; and make it harder to withdraw funds or close an account. Regulators, including the OSC, are monitoring the impact of digital engagement practices in the investment industry and the influence these techniques may have on investors.
JANUARY 2024
Research Study: Profiles of Retirement
This study examined the financial lives of retired Canadians and those approaching retirement. While most retired Canadians said they are in a strong financial position, a concerning 15% of retirees rated their financial situation as poor. Almost one third of retirees reported their monthly expenses in retirement are higher than they expected. The study also found that those who are not yet retired may not retire as comfortably as those who are already retired. Compared to retirees, those who are not yet retired have less savings and more debt. They are more likely to expect to rely on their own savings and less likely to have a work-related pension plan. The study also found both retiree and pre-retirees may not be prepared for financial emergencies. Overall, the study paints a picture of many Canadians over the age of 50 being in a strong financial position, but a significant proportion are financially vulnerable. Identifying and addressing the needs of seniors is an important priority for the OSC. The research results will help inform the OSC’s regulatory and operational work in support of older investors.
NOVEMBER 2023
Research Study: Crypto Survey 2023
This study examines Canadians’ crypto-related opinions and behaviours, and compares the findings to the 2022 Crypto Assets Survey to understand how Canadians’ views of crypto changed over an eventful year. Canadians’ crypto ownership has declined by 23% and more Canadians regret investing in crypto. The study provides a profile of crypto owners, their reasons for purchasing crypto assets or funds, the role of financial advice, and importantly, allows us to understand how these factors have changed in the past year as the crypto landscape shifts.
NOVEMBER 2022
Research Study: Gamification & Other Behavioural Techniques
OCTOBER 2022
Research Study: Crypto Assets 2022
This study examines Canadians’ crypto ownership and knowledge. It found 13% of Canadians currently own crypto assets or crypto funds. The study also found most Canadians did not have a working knowledge of the practical, legal and regulatory dimensions of crypto assets. Crypto assets were believed to play a key role in the financial system by 38% of those surveyed. The study provides a profile of crypto owners, their reasons for purchasing crypto assets or crypto funds, the role of financial advice, impact of advertising, and the experience of crypto owners with crypto trading platforms.
SEPTEMBER 2022
Investors vs. Savers: Attitudes Towards Investing
This study compares the attitudes and beliefs of investors versus savers about our capital markets. It was conducted from January 17 to February 9, 2021 — an interesting time as the GameStop saga began midway through our data collection. The study found significant differences between investors and savers in four thematic areas: wealth creation, fairness of capital markets, effectiveness of regulation, and the economic importance of capital markets.
SEPTEMBER 2022
Investor Knowledge Study
This study assesses the financial knowledge of retail investors across five areas that are of importance when making investment decisions. The survey includes the widely-used financial knowledge questions currently used across Organization for Economic Co-operation and Development (OECD) jurisdictions. On average, investors answered 53% of the questions correctly. The study found that investors have the least knowledge when it comes to investment costs and investor protections. 29% of Canadian investors are overconfident in their financial knowledge, however, completing the survey questions was an effective way to reduce overconfidence in some investors through debiasing.
APRIL 2021
Self-Directed Investors: Insights & Experiences
More DIY, or self-directed, retail investors became active during the pandemic according to our study. It found 10% of self-directed investors opened their account during the pandemic. The information sources they relied on most to make investment decisions included their own personal views about company based on their personal experiences with its products and services; and posts on social media and online message boards such as Reddit, Twitter and Facebook.
Latest Research
APRIL 2021
Investor Experience
Nearly half of investors reported increased levels of stress during the COVID pandemic, according to the Investor Experience Research Study. It found most of these investors communicated with their advisors and some sold more than 20% of their portfolios during the pandemic.
Latest Research
February 2024
Digital Engagement Practices: Dark Patterns in Retail Investing
This study examined the use of dark patterns and other digital engagement practices and how those techniques are being used in some investment contexts. Dark patterns are digital engagement practices that use online interfaces to coerce, steer, and/or deceive users into making decisions that benefit a business but may not align with an investor’s best interests. The study found the prevalent use of dark patterns on digital investing platforms, including concerning techniques that: disguise the cost of investing; obtain personal information without informed consent; and make it harder to withdraw funds or close an account. Regulators, including the OSC, are monitoring the impact of digital engagement practices in the investment industry and the influence these techniques may have on investors.
JANUARY 2024
Research Report: Profiles of Retirement
This study examined the financial lives of retired Canadians and those approaching retirement. While most retired Canadians said they are in a strong financial position, a concerning 15% of retirees rated their financial situation as poor. Almost one third of retirees reported their monthly expenses in retirement are higher than they expected. The study also found that those who are not yet retired may not retire as comfortably as those who are already retired. Compared to retirees, those who are not yet retired have less savings and more debt. They are more likely to expect to rely on their own savings and less likely to have a work-related pension plan. The study also found both retiree and pre-retirees may not be prepared for financial emergencies. Overall, the study paints a picture of many Canadians over the age of 50 being in a strong financial position, but a significant proportion are financially vulnerable. Identifying and addressing the needs of seniors is an important priority for the OSC. The research results will help inform the OSC’s regulatory and operational work in support of older investors.
NOVEMBER 2023
Research Report: Crypto Assets 2023
NOVEMBER 2022
Research Report: Gamification & Other Behavioural Techniques
OCTOBER 2022
Research Study: Crypto Assets 2022
This study examines Canadians’ crypto ownership and knowledge. It found 13% of Canadians currently own crypto assets or crypto funds. The study also found most Canadians did not have a working knowledge of the practical, legal and regulatory dimensions of crypto assets. Crypto assets were believed to play a key role in the financial system by 38% of those surveyed. The study provides a profile of crypto owners, their reasons for purchasing crypto assets or crypto funds, the role of financial advice, impact of advertising, and the experience of crypto owners with crypto trading platforms.
SEPTEMBER 2022
Investors vs. Savers: Attitudes Towards Investing
This study compares the attitudes and beliefs of investors versus savers about our capital markets. It was conducted from January 17 to February 9, 2021 — an interesting time as the GameStop saga began midway through our data collection. The study found significant differences between investors and savers in four thematic areas: wealth creation, fairness of capital markets, effectiveness of regulation, and the economic importance of capital markets.
SEPTEMBER 2022
Investor Knowledge Study
This study assesses the financial knowledge of retail investors across five areas that are of importance when making investment decisions. The survey includes the widely-used financial knowledge questions currently used across Organization for Economic Co-operation and Development (OECD) jurisdictions. On average, investors answered 53% of the questions correctly. The study found that investors have the least knowledge when it comes to investment costs and investor protections. 29% of Canadian investors are overconfident in their financial knowledge, however, completing the survey questions was an effective way to reduce overconfidence in some investors through debiasing.
APRIL 2021
Self-Directed Investors: Insights & Experiences
More DIY, or self-directed, retail investors became active during the pandemic according to our study. It found 10% of self-directed investors opened their account during the pandemic. The information sources they relied on most to make investment decisions included their own personal views about company based on their personal experiences with its products and services; and posts on social media and online message boards such as Reddit, Twitter and Facebook.
APRIL 2021
Investor Experience
Nearly half of investors reported increased levels of stress during the COVID pandemic, according to the Investor Experience Research Study. It found most of these investors communicated with their advisors and some sold more than 20% of their portfolios during the pandemic.
