Street-Proofing Tools for Investors

NOTE TO EDITORS: This is the second of six news releases provided by the Nova Scotia Securities Commission in advance of Investor Education Week, April 25-May 1.

Investment rewards come with some measure of risk and stress. One of the ways the investor can pass the "sleep at night" test is by learning to assess the risk of any given investment as well as their own risk comfort level.

Risk awareness and risk tolerance are the main messages from the Canadian Securities Administrators (CSA) for the second-annual Investor Education Week, April 25-May 1.

"We want to provide investors with the tools for assessing risk and the level of risk they as individuals will feel comfortable with," said Nicholas Pittas, director of securities for the Nova Scotia Securities Commission. "We want to help street-proof investors."

CSA has four new educational tools to help investors educate themselves so that they can invest intelligently. The new materials are:

• A four-page financial planning worksheet that helps investors review their financial situations and objectives, and develop a better understanding of the risk levels they are willing to accept.

• An educational poster that introduces novice investors to the different types of securities; it is a teaching aid for schools, investment clubs and the individual investor to use as a reference.

• Look Before You Leap!, a brochure explaining the complexities and risks of exempt market securities, such as limited partnerships. Exempt market securities do not require a prospectus and can lead the novice investor into difficulties.

• Mutual Funds: What You Need to Know, a brochure explaining what the average investor needs to know about mutual funds. Mutual funds are the most common investment among Canadians, yet most investors will admit they do not have a thorough understanding of what they are and how exactly they work.

These materials are available at no charge from the Nova Scotia Securities Commission by e-mailing [email protected] or by phoning 902-424-7768. The Canadian Securities Administrators comprises the 12 provincial and territorial securities regulators. Investor Education Week is one of its major initiatives directed at educating investors and ensuring they investigate before they invest.

This year, commissions in all provinces and territories will be holding special investor education activities. They will be presenting investor education seminars in various communities, in co-operation with the Investor Learning Centre. They will also host a national radio talk show and release the results of a major national survey that explored what Canadians know and don't know about investing. For more information about Investor Education Week activities, phone the commission at 902-424-7768.

The Nova Scotia Securities Commission is the independent provincial government agency responsible for regulating trading in securities within the province.