How Canadians are investing is changing: Here’s what you should know

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As was discussed in the “Focus on Investors” panel at this year’s ASC Connect conference, the way Canadians invest and how they think about building long-term wealth is changing faster than ever. Younger investors are entering the market earlier and relying on digital tools to guide their decisions, while older Canadians are adjusting how they manage retirement income as life expectancies, and living and care costs, continue to grow.

 

Environmental changes reshaping investor needs

To understand why investor behaviour is shifting across age groups, it’s important to look at the broader pressures shaping Canadians’ financial decisions. Canadians are living longer, working later in life, and facing higher costs in areas like healthcare, housing, and caregiving, all of which are stretching financial plans further than previous generations expected.

Traditional assumptions about retirement, owning a paid-off home, living debt-free, and relying primarily on pensions no longer hold true for many people. And these pressures aren’t limited to just older Canadians. Rising living costs, economic uncertainty, and competing financial priorities are affecting younger investors too. As a result, many are turning to DIY investing much earlier than previous generations as a way to reach their financial goals, both short- and long-term.

At the same time, many younger Canadians— with limited investing experience—are about to receive the largest transfer of wealth in Canadian history. Over the next two decades, an estimated $1 to $2 trillion will move from baby boomers to younger generations. For many recipients, this will be their first major exposure to managing significant assets or investment portfolios.

Handled well, this wealth has the potential to strengthen financial security for individuals, families and communities. But if unknowing investors allow these assets to flow into speculative trends, online hype, or fraudulent opportunities, the consequences could be costly. As longevity, rising costs, the growth of DIY investing, and the unprecedented wealth transfer reshape financial realities, Canadians of all ages need the knowledge and skills to evaluate opportunities, manage risk, and recognize the warning signs of fraud.  Protecting your money in today’s environment means understanding not just how to invest but how to invest wisely.

These pressures affect younger and older investors differently, but they all encourage more independent decision-making, often before they have the knowledge needed to navigate these decisions confidently.

 

Technology is changing how people start and stay invested

Technology has become the primary tool helping Canadians adapt and make investing more accessible. The rise of fintech platforms and mobile tools has lowered barriers, and investors can now open accounts in minutes, buy fractional shares, or access automated portfolios, all from their phones.

These technological shifts affect both younger and older investors. It enables younger investors to enter the market more easily, while also supporting older investors who increasingly rely on digital tools to manage and extend their retirement income.

 

More Canadians are choosing different tools to invest

Investors are stepping away from traditional channels that provide more advice, and they are embracing digital platforms that promise accessibility, control and cost savings. Many prefer to pay less fees, and to learn by doing, opening accounts, making trades and gaining confidence through experience enabled by easy-to-use apps and online brokerages. Online brokerage accounts, investing apps and financial content on social media have become part of their financial toolkit.

This trend isn’t inherently negative; in fact, it demonstrates curiosity and initiative. But it also underscores the importance of education. Without proper guidance, investors who rely solely on online sources or “finfluencers” may be exposed to unnecessary risk, misinformation, or even fraud. The growth of DIY investing highlights a broader challenge: helping Canadians distinguish between trustworthy financial information and persuasive marketing disguised as advice.

 

Building financial confidence

As more people invest, the responsibility to understand the risks, market volatility, and fees becomes increasingly essential. Technology accelerates investor engagement, making it even more crucial that we all have access to the knowledge needed to invest wisely. Whether you are just starting or updating your retirement plan, a strong foundation of financial education can help you make informed choices, protect your savings, and stay confident in today’s fast-moving environment.

Establishing lasting, effective investing habits requires a mix of early education, timely learning, and ongoing awareness. Whether you choose to manage your own portfolio, work with an advisor, or do both, starting with a solid investing foundation and access to unbiased, trustworthy information is key to keeping your investments safe.

In today’s fast-moving market, protecting and growing your financial nest egg requires informed decision-making. Knowing how to research investments, check registration, and recognize scams isn’t just good practice; it’s essential. CheckFirst.ca provides Albertans with the tools to do exactly that.

To stay connected and receive updates on unbiased investing information, subscribe to our CheckFirst newsletter. If you are interested in the “Focus on Investors” discussion at ASC Connect, you can watch it here.

Inside one of Alberta’s largest Ponzi schemes: How Black Box deceived investors and how to avoid similar scams

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When news of an investment scam breaks, it’s sometimes easy to tell ourselves, “That could never happen to me.” Yet each year, many Albertans, both experienced and new to investing, are defrauded in seemingly real investment opportunities.

In August 2025, the Alberta Securities Commission (ASC) issued a ruling against Craig Michael Thompson and his companies, Black Box Management Corp. and Invader Management Ltd., for carrying out one of the largest Ponzi schemes in Alberta’s history. Over three-and-a-half years, Thompson invested more than $150 million CAD, and defrauded over 1,000 investors across Alberta and the U.S. of at least US$47 million.

 

It can be hard to spot the warning signs of an investment scam

It might be easy to think the victims of Thompson’s fraud were risk-takers willing to make high-risk bets for big rewards. But unlike many investment scams that promise quick riches or unrealistic returns, Thompson’s schemes were disguised as a low-risk, professional operations.

So how did Thompson lure people in and keep them deceived? The answer lies in the psychology of trust and the behavioural biases that scammers use to exploit people.

 

How Ponzi scheme operators use trust to deceive investors

Investment scams aren’t just built on fake documents or false account statements. They are built on stories; stories that feel personal, believable and trustworthy.

In this case, Thompson claimed to have mastered the markets, telling potential investors that he had not experienced a single losing day since 2014. He also used three classic persuasion tactics to draw in investors:

1. Authority: The “expert” who never loses a trade

Thompson positioned himself as an experienced and successful day trader, claiming he had never faced a negative trading day since 2014. He used technical jargon, like “stop-losses”, and produced fake weekly reports detailing his trading wins to make himself sound credible.

Fraudsters often use complex language not only to reinforce expertise and appear knowledgeable, but also to intimidate. This can make investors less likely to ask questions or challenge claims, allowing repeated statements to feel more convincing.

This is called the illusory truth effect: the tendency to accept information as true simply because we hear it repeatedly. Each time Thompson reinforced his “no losing days” story through conversations or weekly updates, it became more credible.

CheckFirst tip: Confident claims and repeated tales of success don’t tell the full story or replace legitimate qualifications and industry registration. Instead of relying on repetition or reputation, do your own research and look for verified information. Always ensure that the person you are working with is registered to sell investments with a provincial securities commission before you invest.

2. Social proof: Everyone else is “making money”

Many Black Box investors heard about the opportunity through friends, colleagues or family members who, based on reports, believed that their own investments were growing. In reality, Thompson generated fake reports for early investors that showed steady returns, which they shared with others, unknowingly helping spread his scheme.

It is human nature to follow the actions of the group. When others around us seem to be having success, it can feel reassuring and safe to follow their lead. Scammers know this and take advantage of psychological biases like herding behaviour or the fear of missing out (FOMO). They use this to manipulate trust between groups to create the illusion of legitimacy.

CheckFirst tip: If someone you know, even a friend or family member, recommends an investment or a person to work with, take a step back and verify the details for yourself. Again, independent research and registration checks are your best defence against fraud.

3. Illusion of control: “Don’t worry, you can withdraw your money anytime”

Thompson also offered investors a sense of control. They were told they could withdraw money at any time, which many investors did, making the opportunity feel flexible and low risk. Supported by fake weekly reports that showed two to three per cent “profits”, Thompson reinforced that illusion of safety.

But real markets don’t work that way. Returns fluctuate. No-risk and consistent positive returns aren’t just unlikely, they are unreal. If you’re being shown a steady gain every week regardless of what’s happening in the economy, that’s a sign that something isn’t real.

CheckFirst tip: Legitimate investing involves volatility. Be cautious of anyone who promises smooth, guaranteed growth or no down weeks. Start by understanding investment risk.

 

How the Black Box Ponzi scheme collapsed

Like all Ponzi schemes, Black Box relied on a steady flow of money from new investors to pay earlier ones, until the scheme eventually unravelled.

By the fall of 2023, the scheme collapsed, leaving more than 1,000 investors with significant losses. Of the roughly $150 million raised, Thompson lost at least US$47 million. The rest was used to pay earlier investors, lost through trading, transferred to other entities, or diverted for Thompson’s personal benefit.

When concerns were raised by investors and their financial institutions, the ASC acted quickly to investigate and freeze accounts.

“When we received a call from a financial institution raising concerns about a potential Ponzi scheme in one of their client accounts, we took immediate action to have those accounts frozen and issue interim orders,” said Cynthia Campbell, the ASC’s Director of Enforcement, speaking to the media. “At that point, only about US$300,000 remained. It appears all of the other funds were gone.”

Thompson and his companies admitted to trading securities and defrauding investors. As part of a settlement agreement in August 2025, they were sanctioned and ordered to pay nearly $9 million to the ASC.

 

How to protect yourself from investment scams

Even the most seasoned investor can be manipulated by a story that feels personal. The best way to protect yourself is to slow down and ask questions before you hand over your hard-earned money:

  • Pause before you invest. Fraudsters rely on urgency. Take your time to evaluate.
  • Check registration. Use CheckFirst.ca to see if the person and/or company is registered to sell investments.
  • Ask questions. If you can’t clearly understand the investment opportunity or identify the risks — it’s time to step back.
  • Expect fluctuations. Legitimate investments rise and fall. Guaranteed or always positive returns don’t exist.
  • Seek a second opinion. Talk to a registered financial professional or a third party before making big investment decisions.

Doubt alone isn’t the only way to keep you and your money secure. Before you invest, do your own thorough research. Ask questions, and verify information against publicly available and trusted sources.  When it comes to your money, the smartest move you can make is to CheckFirst.

 

Investor education month: Lessons and insights from hybrid investors

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October marks Investor Education Month, a national initiative that encourages Canadians to take time to strengthen their investing knowledge and make informed investing decisions.

One approach that some Canadians are considering is hybrid investing. A hybrid investor works with an advisor and also manages part of their investments on their own. According to the Canadian Securities Administrators’ (CSA) recently published Hybrid DIY Investing: A Research Summary Report, approximately one in eight Canadian investors use this dual-track investing method.

Understanding how hybrid investors think and act can offer valuable insights to help all investors make suitable and informed investment decisions, whether they are managing their portfolio entirely on their own, working with an advisor, using a robo-advisor or combining the different approaches.

 

What the CSA research tells us

The CSA surveyed hybrid investors nationally and then conducted focus groups with those who identified themselves as taking on substantially more risk, while conducting less formal planning. Through this research, hybrid investors shared valuable and interesting takeaways related to risk tolerance and advisor relationships.

 

A financial plan developed alongside a professional can reduce speculative investing behaviour

A comprehensive financial plan that takes into account an investor’s goals, time horizon, chosen investments and risk tolerance is critical to the success of any investor. Many of the surveyed hybrid investors relied on their advisor to assist them in creating their financial plan. However, those who developed a plan on their own or invested without a plan engaged in more speculative investing behaviour. This included frequent trading, investing in speculative assets like crypto and seeking very large returns in short time frames. Alternative assets like crypto are high risk and their values are largely dependent on investor interest and supply and demand. Additionally, behaviours like seeking short-term big wins can expose investors to unsuitable high-risk investments and even investment scams.

Regardless of your investing method, consider reviewing your financial plan and how you are tracking towards your goals. If you do not have a plan or you are struggling to build a plan, consider reaching out to a certified financial planner or a registered financial advisor. They can be a great resource to help align your investments with your risk tolerance.

 

A worthwhile advisor relationship goes beyond surface-level conversations

If you use a financial advisor, it’s helpful to remember that the relationship is only as worthwhile as the time you invest in it. The more time you take to ask questions, actively review your plan and portfolio with your advisor, and update them on changes in your life, the more informed you will both be and the more value you will receive. Taking steps to develop deeper conversations around your investment portfolio could include asking your advisor to provide insight into how your investments are aligned with your financial goals, and whether there are any optimizations needed as you near achieving your goals.

Surprisingly, 81 per cent of hybrid investors reported having a close relationship with their advisor, but only occasionally discussed their investments. In contrast, the focus group participants of highly speculative hybrid investors expressed a more distant relationship and rarely or never shared information about their DIY investments with their advisor.

 

Understanding your risk tolerance allows you to stay within your limits

One of the most important aspects of investing is understanding the level of risk you take. Every investor has a risk tolerance comprised of their willingness and ability to take risks with their money. A general rule of thumb is to align the overall risk of your investment portfolio to your risk tolerance. This approach helps you pick suitable investments, but also helps you set reasonable expectations on the level of potential returns you may generate in the future.

The Hybrid DIY Investing research found that 84 per cent of hybrid investors are willing to take on moderate to significant investment risk, nearly double the 46 per cent of Canadian investors overall, as reported in a recent CIRO survey. Having a high risk tolerance is not a bad thing, but when combined with an incomplete financial plan and surface-level discussions with your financial advisor, you could be exposed to potentially unsuitable investments and possibly fraud.

 

Fraud awareness and prevention starts with trusted sources, not gut instinct

The hybrid investor research revealed that high-risk hybrid investors were less aware of the red flags of investment fraud. Based on the results of the focus group discussions, the high-risk investors, often drawn to speculative and alternative investments, tended to overlook key steps in verifying the legitimacy of trading platforms or investments. Rather than checking registration or conducting their own research, many cited relying on intuition and informal checks online with Google, Reddit and other online forums.

Investment fraud continues to be the most prevalent form of fraud across Alberta. Given this risk, it is essential that all investors start by checking the registration of any individual, firm or platform they plan to work with. In addition to these registration checks, doing independent research on any investment you are considering and involving a third party or your financial advisor, if you use one, in the review can help mitigate the risk of falling victim to a scam.

Although the CSA research focused on hybrid investors, the findings carry important lessons for all Albertans navigating their investing journey. To be successful, it is important that you take the time to build a solid financial plan, understand your personal risk tolerance, and verify the legitimacy of all platforms and products that you are considering.

Enhancing investor protection: What OBSI’s binding authority means for investors

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Imagine you notice unexpected fee charges in your investment account or feel your financial advisor has given you advice that resulted in unexpected losses. You first raise your concerns with your advisor, then escalate to their manager, but your issue remains unresolved. Frustrated, you turn to the Ombudsman for Banking Services and Investments (OBSI), Canada’s independent dispute-resolution service.

After a detailed investigation, OBSI finds adequate reasons for your complaint and finds in your favour. OBSI recommends that your advisor compensate you for the financial loss you have experienced.

However, under the current system, OBSI’s authority is limited. Its recommendations are not legally binding. Firms can choose not to follow OBSI’s recommendations, leaving everyday investors without meaningful recourse.

Change, however, is on the horizon. As part of the initiative to enhance OBSI’s authority in resolving disputes between investors and their firms, the Canadian Securities Administrators (CSA) recently launched a second public consultation on a proposed framework. This would give OBSI the legal authority to make binding decisions in investment-related complaints.

 

What is OBSI, and how does it protect investors?

OBSI is Canada’s independent dispute-resolution service for banking and investment complaints. It reviews complaints from investors who have not been able to resolve their complaints directly with firms. If OBSI finds that financial harm has occurred as a result of a firm’s conduct, it can recommend compensation up to $350,000.

OBSI is not a regulator. It does not set or enforce rules for the conduct of firms or advisors. That responsibility lies with regulatory bodies like the Alberta Securities Commission (ASC), which oversees Alberta’s capital market, or the Canadian Investment Regulatory Organization (CIRO), which regulates dealers and advisors across Canada.

What makes OBSI especially important is its accessibility for retail investors who may not have the means to pursue legal action.

 

Are OBSI’s decisions legally binding?

Currently, firms that participate in the OBSI dispute resolution process are not legally required to follow its recommendations. While many firms comply, some refuse to do so either partially or entirely. When a firm refuses to comply with an OBSI recommendation, the investor is left with a decision in principle, but no way to make it happen.

While OBSI does publish the names of firms that decline to comply, investor advocates and independent reviewers say this “name and shame” approach has not been effective in ensuring compliance with OBSI recommendations.

 

What is the CSA’s proposed framework for OBSI?

In July 2025, the CSA, the umbrella organization of Canada’s provincial and territorial securities regulators, including the ASC, shared proposed enhancements to a framework to improve Canada’s dispute-resolution service for investors. The framework includes details of the proposed oversight of OBSI and it builds on the proposed framework that was initially shared in late 2023. The framework reflects years of dialogue and growing calls for strengthening OBSI’s mandate from investor advocates.

Key elements of the proposed framework include:

  • OBSI decisions would become legally binding: Under the proposed framework, if OBSI finds in favour of an investor, its decision would be enforceable like a court order. Firms would be required to comply.
  • External decision-makers for higher-value cases: In cases where recommended compensation is $75,000 or more, an external decision-maker would be appointed to ensure fairness and transparency.

Together, these changes are intended to give OBSI the authority — not just the mandate — to ensure meaningful and fair outcomes for investors and firms.

 

Why does this matter for investors?

For most Canadian investors, including Albertans, OBSI is one of the few accessible avenues to resolve disputes and seek fair compensation. Without the power to enforce its recommendations, OBSI’s impact has been limited.

Binding authority would help ensure all investors, regardless of resources, are treated fairly. Instead of relying on a firm’s goodwill or accepting less than the recommended amount, investors would have access to a fair and impartial process with enforceable outcomes.

Stronger investor protections, like this framework that has been proposed by the CSA, support the broader mandate of provincial regulators such as the ASC to foster a fair and efficient capital market.

 

Share your feedback: Support stronger Canadian investor protection

The CSA is asking Canadians to share their thoughts on the proposal. Your voice as an Albertan, matters.

If you have ever gone through the complaint process or have comments about the fairness and accountability of the proposed framework, this is your chance to weigh in.

The comment period is open until September 29, 2025.

You can read more about the proposal and find instructions on how to submit your feedback within the consultation notice.

If you have questions, you can reach out to:  Eniko.Molnar@asc.ca

Whether you support the proposal or think it could be strengthened, investor voices like yours can help shape the final framework.

 

Know your rights and protect yourself as an investor

Investor protection begins with knowing your rights. CheckFirst offers unbiased, easy-to-understand resources to help you feel more confident when dealing with your investments — whether you’re making a decision on your own or working with a financial advisor.

Here are some resources to help you with your investment journey:

The more you know, the better prepared you are to protect your investments.

New to Canada? Here’s what you need to know before you start investing

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Starting a new life in Canada brings new opportunities, including the chance to grow your money through investing. However, with a different financial system, unfamiliar products, and advice coming from all directions, it can be hard to know where to start. If you’re new to Canada, here’s what you need to know to make informed investment decisions and protect your financial future.

Whether you’re considering your first Guaranteed Investment Certificate (GIC) or opening a trading account, investing can be a great next step to reaching your financial goals. By understanding how investments work in Canada, how they’re regulated, and the protections available, you can invest confidently, not reactively.

 

Start with a strong financial foundation

Investing should never come at the expense of your financial stability. Before buying your first investment product, it’s important that you know the basics.  That includes managing day-to-day expenses, setting aside emergency savings, and planning both short- and long-term goals.

As a newcomer, you may be adjusting to a new cost of living, building a Canadian credit history, or still finding reliable income. These are foundational priorities that deserve attention before taking on investment risk. It’s also worth learning how Canada’s banking and tax systems work, especially if you’re supporting family members back home or saving toward big goals like a home, a car, or post-secondary education.

The temptation to invest quickly is understandable, especially when you hear others talking about how they “got in early” or “doubled their money.” However, it’s important to remember that building wealth in Canada takes time. The most successful investors usually start small, stay focused on their goals, and avoid chasing trends. If you’re not sure where to begin, the ASC’s Investing Basics blogs can help you understand your comfort level with risk, explore the types of investments available in Canada, and determine if you’re financially ready to take the next step.

 

Understand the investment

Canada offers a range of investment products, including stocks, bonds, exchange-traded funds, mutual funds, and GICs. Each comes with different levels of risk, fees, tax implications, and liquidity. What may be familiar or common in your home country may work differently here. Just because a friend or social media contact is investing in something doesn’t mean it’s the right choice for you.

The 2024 CSA Investor Index found that nearly 45% of Canadians are now managing some or all of their investments themselves. This do-it-yourself approach is especially popular among younger adults who may prefer more flexible options or want to avoid high fees. But that independence makes it even more important to understand the investment itself, not just the sales pitch.

Before investing, ask yourself:

  • What exactly am I putting my money into?
  • How does it grow, and what are the fees?
  • Can I explain it clearly to someone else?
  • Can I take my money out, and how quickly?
  • Does this fit my goals and timeline?

If you can’t answer these questions, that’s a sign to pause and do more research. Investing in something you don’t fully understand, even if it “feels right,” can lead to costly mistakes.

 

Always check registration

One of the most important protections for investors in Canada is registration. Crypto trading platforms and anyone offering you an investment opportunity or giving investment advice, must be registered in Canada.

That includes financial advisors, platforms, and individuals promoting opportunities in private groups or social chats. Registration ensures they meet professional standards and follow Canadian laws designed to protect investors like you.

It’s easy to assume someone is legitimate if they sound confident, share success stories, or speak your language. But trust should never replace verification. Before handing over your money, check registration to verify if an individual or firm is registered to sell investments in Alberta. It takes less than a minute, and it could save you from falling into a scam that looks legitimate on the surface.

 

Don’t ignore the red flags

The CSA Investor Index found that 23% of Canadians had been approached with a potentially fraudulent investment. Among those, many said the offer came with documents that looked official, promises of guaranteed returns, and pressure to act quickly. Similarly, an Interac survey in 2023 found that 70% of new Canadians feel more vulnerable to fraud, and over half say they or someone close to them has already been targeted.

Scams today are designed to look real, and many are aimed directly at people who are new to the country. Fraudsters understand how to use urgency, community ties, and social proof to manipulate people. They might claim they’ve invested their own money or that “everyone in the group is doing it.” They may use your language, share your background, or even reference faith, culture, or shared values to build credibility.

This is called affinity fraud, and it’s common in newcomer communities. Don’t let a friendly tone or shared background replace careful thinking. If something feels off, pause. Talk to a trusted friend, advisor or call the ASC. And remember, real investments don’t come with deadlines, pressure to get in quickly or promises of guaranteed returns that sound too good to be true.

 

If you have been approached, you can report the incident confidentially to us at the ASC via email at complaints@asc.ca or call us at 403-355-3888. Reporting fraud helps protect others. Even if you didn’t lose money, your story could stop someone else from becoming a victim.

Investing can be an important step toward building your future in Canada. But it only works when it’s based on good information, a strong financial foundation, and trusted sources. As a newcomer, you don’t have to figure it all out overnight. What matters is taking your time, asking questions, verifying information and checking registration before you commit your hard-earned money. Understand what you’re investing in. Know who you’re dealing with. Watch for red flags. And above all, make decisions that support your goals, not someone else’s sales pitch.

Investing in the age of apps and finfluencers: How to stay safe when finance is trending

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Not long ago, learning the basics of investing felt like picking up a new language — one largely reserved for those with financial advisor. It was a world filled with jargon, confusing acronyms, and complex charts that seemed like they belonged in a boardroom.

Not anymore. Social media and investing apps have changed the landscape. Financial information is now more accessible than ever, with lessons, instructions and tutorials – which even go viral. Today, learning about Management Expense Ratios, jumping into the latest crypto trend, or finding a “stock tip” is just a couple of swipes away.

With DIY investing on the rise, many millennials and Gen Z investors turn to social media for advice. According to the Canadian Securities Administrators’ (CSA) 2024 Investor Index, a growing number of young Canadians rely on these platforms as their primary source of financial information.

Welcome to the era of the finfluencer — where content creators double as financial influencers, offering a steady stream of advice that ranges from helpful to questionable and potentially harmful. The appeal? They are often packaged into short, relatable, and easy-to-digest videos. But here’s the catch: just because the advice is easy to understand and appears simple to implement, does not mean it’s safe to follow or that it’s right for your financial goals. In some cases, this advice could even be breaking investment laws.

Jayconomics case study: How an Albertan finfluencer broke Alberta Securities law

In April 2025, the Alberta Securities Commission (ASC) found that James Domenic Floreani, a Canmore-based content creator known as Jayconomics, had violated Alberta securities laws. He did this by promoting investments without disclosing that he was posting on behalf of those companies.

The case dates back to sometime between 2020 and 2022, shortly after Floreani launched his digital brand, Jayconomics. Marketing himself as specializing in educational finance content, he built a following on YouTube, Twitter (now X), and Patreon, where audiences viewed him as a source of investment insight. However, during that time, he was paid $89,000 in cash and 20,000 restricted shares in promotional fees from four Alberta-based companies, in exchange for featuring them on his channels.

The issue? Floreani failed to clearly disclose that these videos and posts were made on behalf of the companies whose stocks he was promoting. In doing so, Jayconomics wasn’t just breaking securities law. According to comments on his YouTube videos, his followers lost real money acting on his recommendations.

Evidence presented by the ASC included comments from video posts in April and September 2022 that further supported this. In one case, an individual wrote, “Many of your viewers got burnt on your stock recommendations….”

 

How an unregistered finfluencer can put your money at risk

Despite presenting himself as an investing expert, Floreani’s financial education was limited to a single introductory university course and some online learning. During his interview, he admitted that Jayconomics was inspired by other content creators and that he often used clickbait-style titles like “This Stock EXPLODED to the NASDAQ, Dip Expected. Peak Fintech UPDATE & FULL ANALYSIS.”

As Floreani explained, “You have to make your titles pop out, and you have to make your captions pop out; otherwise, people are not going to click.”

With the first phase of the proceeding, which found that Jayconomics broke securities law, now complete and the decision public, the case will move into the next phase: determining the penalties Floreani should face for his actions.

 

5 red flags to watch for when following investing advice online

The next time you’re on FinTok or scrolling investment content, here’s what you should keep in mind:

  1. No mention of credentials or registration: Generally, in Canada, anyone offering investment advice must be registered with a securities regulator — like the Alberta Securities Commission. If a finfluencer never mentions credentials or only references vague experience, proceed with caution.
    If you’re looking for financial advice, speak to a registered financial advisor. They are licensed and regulated, and under the CSA’s Client Focused Reforms, are required to put the client’s interests first. You can verify someone’s registration status anytime at CheckFirst.ca/Check-Reg.
  2. Get-rich-quick promises: Be cautious of content that guarantees fast or unrealistic returns. Clickbait titles like “Double your money in a week” or “This stock will 10x” are designed to lure you.
  3. No disclosure of sponsorships or paid partnerships: In Alberta, anyone, including content creators, who promote the buying or selling of investments must be upfront and disclose if they’re doing so on behalf of a company and if they’re being paid to post. If the content sounds like an ad but doesn’t say it’s sponsored, that’s a warning sign.
  4. Charts with no context or unverifiable claims: Charts and graphs are often used to make content look credible. But without a clear source or explanation, the data could be misleading or cherry-picked to suit the influencer’s message.
    Always do your own research. A great place to start is looking for information beyond what is shared by the finfluencer, like publicly available financial and annual reports.
  5. Urgency tactics like “Act now before it’s too late!”: Creating a sense of FOMO is a common tactic used to pressure you into hasty decisions. Scammers rely on this. A well-developed investment strategy focuses on your goals as an investor, understanding your risk tolerance, time horizon and making informed decisions—not reacting emotionally.

While it may be impossible to avoid investing content online, recognizing red flags and examples like Jayconomics can help you avoid a risky or potentially costly decision in the future.

That is why, last month, the ASC joined other securities regulators for the Global Week of Action Against Unlawful Finfluencers. The initiative combined education for finfluencers on the rules they need to follow, together with public awareness about the risks of online investment content.

 

Before you invest, CheckFirst

Wherever you are in your investing journey, remember: one video or post should never drive a major financial decision. Even well-meaning creators can unknowingly give harmful or illegal advice.

Before following any financial content online:

  • Verify the source and their expertise.
  • Check for registration.
  • Check if it fits your goals and risk tolerance.
  • Ask yourself if there’s a financial motive behind the advice.

Your hard-earned money deserves more than hype. Pause. Ask questions. And always CheckFirst.

From text to pitch: How messaging apps have become a hotbed for investment scams

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A polished social media ad and a friendly invite to an “investors” messaging group might seem like an exciting first step towards a lucrative financial opportunity. But wait, this could be the bait of a well-orchestrated scam. According to the Canadian Anti-Fraud Centre, in 2024, Canadians lost $310 million to investment fraud – with many scams taking place online, including on social media networks.

Fraudsters commonly promote and sell their investment scams to potential victims through advertising on popular social media platforms and apps. These ads commonly promote fake “experts” or “advisors” who offer investment opportunities with high returns and the reassurance of little to no risk.

To connect with potential victims and make communications private and harder to trace or report, fraudsters will direct interested investors to a WhatsApp, Telegram or Facebook Messenger group to receive stock trading tips or guidance. Within these private groups, fraudsters work quickly to establish their fake credentials with the claim of being certified or registered. From here, fraudsters can use various tactics, including:

  • Pump-and-dump schemes that involve guiding investors to invest in stocks that the fraudster is already heavily invested in, using fake information and promotional material to build excitement. As investors put money in, the value of the investment artificially increases. Once the fraudster can no longer pull in any new investors, they sell their shares for considerable profit and tank the value of the investment for everyone else.
  • Providing guidance as an “advisor” and requesting that money be sent to them via wire transfer or crypto for them to invest on your behalf. Once money is sent over, the fraudster may send over fraudulent documents highlighting early but fake returns to establish credibility and incentivize the victim to send more money.
  • Directing investors to a fake trading platform to deposit money and start trading. While the platform looks legitimate with charts and simulated trading, money is not actually invested but taken by the fraudster. The fraudster may use the simulated returns in the investor’s account to push them to invest more for greater returns over time.

No matter what strategy the fraudster deploys, the results are the same for the victim. Investors may:

  • Lose most or all of their “invested” funds.
  • Not be able to access their funds with claims from the fraudster that a tax or fee requires payment, specific forms to be filed or that the investment needs more time to grow.
  • Be unable to contact or receive a reply from the fraudster. This is often followed by the fraudster deleting their account and messages and even shutting down fake trading platforms.

Real investment scam ads advertised to Albertans

Example of facebook investment scam ad Example of social media investment scam ad Example of investment scam ad on facebook example of a whatsapp investment scam ad

 

How can you spot the red flags of social media and messaging app investment scams?

Although it may sound exciting, before you invest in any opportunity promoted online or with someone claiming to be an investment advisor or professional, consider the following:

  • Is the ad promoting unrealistic returns or guaranteed profits? Remember, this is a common tactic to lure in victims. No investment can guarantee you returns, especially those claiming to double or triple your money in a short period of time.
  • Are you being directed to other messaging apps to continue the discussion? This is a red flag that you may be dealing with a fraudster and should be avoided. These messaging apps are used to keep the conversation private and make it easier for the fraudster to disappear and harder to trace.
  • Is the person claiming to be an expert or registered investment professional? Generally, anyone offering investments and all trading platforms dealing with Albertans should be registered with the Alberta Securities Commission. While you can verify the registration of any individual or trading platform, you cannot verify the true identity of a person online. Fraudsters commonly use the names and credentials of registered investment professionals to look legitimate. It is strongly advised that you do not send money to anyone you have not met in person or cannot validate their identity.

 

What should you do if you think you’ve been scammed?

If you are suspicious about an investment opportunity offered to you online through social media or feel like you were the victim of an investment scam, contact the Alberta Securities Commission below.

File a complaint
1-403-355-3888
complaints@asc.ca

 

Recently, the Canadian Securities Administrators launched a national ad campaign, as seen above. This campaign is designed to bring awareness to these kinds of investment scams offered through social media and messaging apps. Knowledge is power when it comes to preventing and reporting investment scams. Take the time to share this article with those you care for so they can be empowered to recognize and avoid this insidious form of investment scam.

Knowledge is power when it comes to preventing and reporting investment scams. Take the time to share this article with those you care for so they can be empowered to recognize and avoid this insidious form of investment scam.

How to read a fund fact sheet: Navigating mutual funds and ETFs

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April 2025 marked the most volatile month for markets since COVID, pushing investor anxiety to new highs, as many stocks and other investment assets rapidly decreased and increased in value.

With inflation and global trade uncertainty on people’s minds, it is easy to feel anxious. In times like these, going back to the basics — like portfolio diversification — can be a helpful strategy in reducing the impacts of volatility. Investment funds like mutual funds and exchange-traded funds (ETFs) offer a simple way for Canadians to diversify by buying a basket of stocks and other investments in one fund rather than individual companies. According to National Bank of Canada, many Canadians turned to ETFs in March 2025 amid market uncertainty.

But with so many options, choosing the right investment fund can be confusing. That’s where a fund fact sheet can be a powerful decision-making tool for Albertans looking to build resilient portfolios.

 

What is a fund fact sheet?

A fund fact sheet (available on the website of the financial institution offering the product) is a document that provides key information about a mutual fund or an ETF. While layouts may vary slightly depending on the fund, these documents are often in plain language and designed to be easily compared — like a product brochure.

A typical fund fact sheet includes: the fund’s objectives, top investments, management fees, investment strategy, risk rating, and past performance history.

To safeguard investors and empower them make informed decisions, Canadian Securities Administrators made fund fact sheets mandatory disclosure for Mutual Funds and ETFs in June 2013 and December 2016 respectively. As part of the requirements, a fund fact sheet must be updated at least annually, or whenever material changes occur.

 

5 things to consider when reading a fund fact sheet

1. Match the fund’s objective with your financial goals

The fund objective, found right at the top, offers a clear statement of what the fund aims to achieve. Some funds are designed to grow your money, others aim to provide steady income, and some focus on preserving capital.

But how do you make this information work for you? Translate the fund’s objective into real-life terms. Ask yourself: Does the fund help me work towards the goals I’m investing for?

If you’re saving for a short-term goal, a high-risk fund like an all-equity option might not be the best fit. But with a longer time horizion, like retirement 30 years down the road, a growth fund might fit your goals.

2. Analyze exposure risk through sector and geographic allocation

This section of the fund fact sheet dives into the types of assets the fund holds. In addition to the top 10 holdings, look closely at the sector and geographic allocations.

This matters because overlapping exposure can reduce the benefits of diversification.

For Albertans, it’s especially important to watch out for home bias with funds that heavily invest in sectors like energy or agriculture — industries that are a significant part of the province’s economy. If you already own individual energy stocks, buying a fund that is also heavily energy-weighted may throw off your portfolio balance. If that sector takes a hit, your losses could be magnified.

3. Don’t take the risk rating at face value

Most fund fact sheets include a simple risk label: low, medium, or high, to give you a basic idea of the fund’s volatility and return potential. Generally, the higher the level of risk the higher the potential return from a fund. While this is a helpful starting point, it’s not the whole picture.

For a holistic view, look for these two key risk metrics, usually available on the fund’s website:

  • Standard deviation – This shows how much a fund’s returns can vary from the average. A higher standard deviation means greater volatility.
  • Sharpe ratio – This measures the return you’re getting for the risk you’re taking. A higher Sharpe ratio indicates that the fund is providing better returns for the amount of risk taken.

While risk labels are helpful, the numbers explained above can give you a clearer picture of how a fund might behave through market swings.

4. Consider the Management Expense Ratio (MER)

Every investment fund charges a fee known as the Management Expense Ratio (MER). This fee covers the cost of managing the fund and is deducted from your returns.

Typically, mutual funds are actively managed by a fund manager and come with higher MERs, usually between .75 and 2.5 per cent. ETFs, on the other hand, are often passively managed, tracking an index which is a market sector or segment, and usually have lower MERs, ranging from 0.05 to 0.5 per cent.

MERs can quietly eat into your returns over time. For example, a 2 per cent MER on a $10,000 investment is $200 per year in fees, while 0.25 per cent MER is $25. Lower fees mean more of your money stays invested.

5. Common terms you might see on a fund fact sheet

As you read a fund fact sheet, you might come across some additional terms. Here’s a quick guide:

  • Net Asset Value (NAV): The per-unit value of the fund, calculated by dividing the total value (assets minus liabilities) by the number of units.
  • Distribution yield: The income the fund pays out, including dividends, interest, and other income distributions.
  • Turnover ratio: How frequently the fund buys and sells investments. Higher turnover often means more active management — and potentially higher fees.
  • Benchmark: An index (like the S&P/TSX Composite Index) used to compare the fund’s performance.
  • Bid-ask spread: The difference between the price a buyer is willing to pay and what a seller asks. A narrower spread is better — it means you lose less value when trading.

 

A volatile market’s headlines can rattle any investor. But investing wisely isn’t about reacting to the news. It’s about sticking to the fundamentals.

Fund fact sheets are an essential tool that empowers you to make informed investing decisions. Please take time to understand it and set yourself up for long-term diversification.

 

Meme coin frenzy: How viral crypto coins could be pump-and-dump scams

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On December 4, 2024, viral TikTok sensation Hailey Welch launched her crypto coin named after her infamous catchphrase “Hawk Tuah.” Interestingly, Hawk Tuah Coin, or the $HAWK token, was not created with any clearly defined purpose or utility. As noted by Welch’s publicist, it existed solely as a way to bring fans together.

Driven by hype and fan frenzy on social media, the token launched with a 900 per cent spike from its starting price. At its peak, the $HAWK – widely considered a meme coin among fans — reached nearly $500 million in market capitalization. In traditional finance, market capitalization refers to the value of a company traded on the stock market. Within hours though, the coin’s value plummeted, losing almost 95 per cent of its value. According to a subsequent lawsuit filed by 12 investors, they lost more than $151,000 combined after investing in the coin.

The meteoric rise and fall of the Hawk Coin highlights the volatile nature of crypto coins. It also serves as a reminder that meme coins can be created with suspect intent, often lacking any real utility beyond generating hype. Remember, the allure of quick profits and the excitement of buying into a social media frenzy can be tempting, but investing in these assets can be extremely high risk.

 

What are meme coins?

Crypto assets were designed with the aspiration of being part of a wider movement to build the foundations of a new decentralized financial system. In this system, transactions between two parties could take place without the need of a government or financial institution middle man. Although meme coins are a type of cryptocurrency, they do have differences.

Meme coins typically emerge from internet culture, celebrating viral humour, social media trends, or influencers rather than financial fundamentals or real-world use cases. What makes these coins popular is their unique ability to capitalize on a sense of community and belonging through humour. Additionally, in some cases, uninitiated investors believe that the low price of meme coins makes them an easy and accessible investment option.

However, because the value of meme coins is primarily driven by community sentiment — and anyone can create a meme coin with the click of a button — they are particularly vulnerable to manipulation. This includes scams such as pump and dumps schemes, particularly with new Initial Coin Offerings (ICOs).

 

How do crypto coins get pumped and dumped?

A pump and dump scam typically takes place in two phases.

The scheme begins when a group of coordinated actors – often the coin’s creators, early investors, or influencers – artificially inflating the coin’s price through aggressive online marketing campaigns and coordinated buying. They generate buzz through social media, often leveraging influencer partnerships, viral content, and promises of “going to the moon.” This is the “pump” phase.

Once enough unsuspecting investors buy into the scheme and drive up the price, the fraudsters execute the “dump.” In this phase, they sell their holdings en masse for a substantial profit, triggering a massive price collapse. Regular investors, drawn into the scheme by the hype and promises of quick riches, are left holding virtually worthless coins.

 

Red flags: How to spot a pump and dump scam

As with any scam, protecting your money begins with taking time to check first for red flags or warning signs. Remember, meme coins are extremely volatile and a high-risk investment, with the potential for significant loss. Before committing your money to any investment — traditional stocks and bonds, crypto or meme coins — ensure you thoroughly research the investment for its legitimacy and alignment with your financial goals and risk tolerance.

  1. Unregistered individuals or trading platforms
    Generally, in Canada, anyone offering investments or investment advice must be registered with securities regulators in the provinces they do business.While trading crypto is allowed in Canada, not all crypto assets are considered securities or derivatives. To protect investors, the Canadian Securities Administrators (CSA) requires all Crypto Trading Platforms (CTPs) or crypto exchanges to be registered with a provincial securities regulator, such as the Alberta Securities Commission.

    Always verify the registration status of a platform in your province before investing.

  2. Token distribution, ownership and audits
    Just as fundamental analysis is crucial when investing in stocks, it is important you do your own research when investing in crypto.Understanding how the crypto token your interested in is shared or allocated among different user groups, such as the founders, investors, and the community can reveal potential red flags.

    Remember, decentralization is a foundational principle of blockchain. Be wary when a small number of wallets hold most tokens. High wallet concentration — where a few wallets hold most of the tokens — could indicate centralization and make the coin vulnerable to manipulation. It is also worthwhile to explore code audits conducted on the coin by the crypto community to uncover any potential vulnerabilities or red flags of the coin.

  3. Aggressive marketing and social media hype
    Scammers often exploit social media to generate artificial demand and FOMO (Fear of Missing Out). Be cautious of over-the-top marketing and promises that sound too good to be true.

The humour and hype surrounding meme coins may seem harmless, but can expose you to significant losses. The social media frenzy around the $HAWK coin shows how easily manufactured hype can mask a pump-and-dump scheme. Remember, separating hype and celebrity interest from your investing decisions can help you better realize your long-term financial goals.

Real estate crowdfunding: What you need to know before you invest

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Real estate crowdfunding has gained popularity as an easy way to invest in property without committing a large amount of money. While these opportunities can be appealing, it’s important to understand what you’re signing up for and the level of risk you are taking. This article breaks down real estate crowdfunding and key factors to consider when making investment decisions.

What is real estate crowdfunding?

Real estate crowdfunding allows multiple people to pool their money to invest in proposed real estate projects. Instead of owning a property outright, investors own shares in a company involved in the project with potential returns paid out at a later date, often years. These crowdfunded investments fall into two categories:

  • Equity investments: You own equity shares of an entity, which may increase (or decrease) in value over time. When the shares are sold, the value of the shares is returned to you.
  • Debt investments: You lend money to a corporate entity by way of a loan. You earn interest over time and when the shares are sold, the amount you lent should be returned to you. Debt can either be secured against the property or unsecured.

It’s important to know that you won’t own the property directly. Instead, your investment is tied to the expertise of the company developing the project.

Here are some questions to ask before jumping into this type of real estate opportunity:

  1. Who owns the property, and who manages it?
    Confirm whether the property’s title is held by the corporate entity you are purchasing shares in or another entity. Knowing the ownership structure will help you understand the risks tied to your investment.
  2. Are the expected returns realistic based on current market conditions?
    Be wary of overly optimistic projections. Even completed projects can face cost overruns, and actual returns may not align with initial projections. There is no such thing as a guaranteed return; market forces and other unpredictable factors influence investment outcomes, especially for long-term investments.
  3. How much debt is on the property, and what is the repayment plan?
    Projects requiring significant debt can put your investment at risk since debt is repaid before equity. Investigate how much debt the project requires and whether it comes from private lenders, who typically charge higher interest rates than traditional banks. Unsecured debt is riskier than secured debt. When there are multiple lenders, the position of the debt on the property’s title affects the risk level of the loan. Lower-priority debt on the title is riskier because higher-priority debt is repaid first.
  4. How experienced is the developer or project manager?
    A developer’s track record plays a critical role in project success. Developers with experience in completing projects with a history of returning money to investors are typically more reliable. On the other hand, new developers or those with multiple unfinished projects may lack the experience needed to navigate challenges. New developers often face a learning curve and might be overly optimistic about returns and timelines, while seasoned developers may be more realistic and less likely to overpromise.
  5. Is the crowdfunding platform registered with the Alberta Securities Commission or operating under an exemption?
    Some crowdfunding platforms are operated by registered dealers who specialize in assisting private companies to raise capital. Other platforms, whose only business is crowdfunding, operate under an “exemption” from registration. Registration-exempt platforms have been vetted and approved by the Alberta Securities Commission but are not allowed to provide any investment advice or assess whether a particular investment is appropriate for individual investors. These platforms are only allowed to accept a maximum investment of $2,500 per person. Check the platform’s status on CheckFirst.ca to see if it is registered or operating under the crowdfunding exemption.
  6. Is the company raising money transparent about its operations?
    Transparency is essential. If the company raising money for the project cannot explain how funds will be used or refuses to provide supporting documents, treat this as a red flag. Look for details about fees, ownership structure, project management and how the funding is allocated.
  7. What fees and costs will you pay?
    Real estate management often involves multiple fees for property management and administration. These fees can eat into your returns. Ask for a full breakdown of fees, determine who benefits from them, and ensure they are reasonable compared to industry averages.
  8. Are there conflicts of interest?
    Investigate related-party transactions, such as properties purchased from affiliates of the company raising money for the project. Check whether the property was sold at a price that an independent third party assessed as being fair and examine relationships between property developers, property managers and the company raising the money for the real estate project. Close ties could lead to biased decisions that negatively impact investors.

Beyond these considerations, understand that while real estate crowdfunding offers a unique way to invest in property, it’s not without risks. These investments are often illiquid, meaning you are not able to access your money quickly. Returns are also not guaranteed and depend heavily on project management expertise, the success of the project and the broader real estate market.

Before investing, make sure you have a clear picture of how this opportunity fits into your overall financial goals and risk tolerance. Doing your due diligence is key. Take the time to research each opportunity, ask critical questions, and/or consult with a registered financial advisor, if needed. Your investment decisions should empower you to build a strong, diversified portfolio while protecting your financial future.