Investors are more vulnerable in the COVID environment

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In terms of investment knowledge, almost four-fifths (78.9%) said they had little or no investment knowledge. A minority of 17.5% would have an average knowledge of investments and 3.5% high knowledge of investments.

“Despite the pandemic, the IPC is operating at full capacity and remains open,” the report said. “The Clinic’s social workers work remotely and diligently to advance the interests of our clients. “

As legal proceedings continued through online and virtual channels, the report says the pandemic has severely hampered the ability of courts and other agencies and adjudicative organizations to deal with investor complaints and actions, affecting some of the clients of the CPI. But even though the proceedings are proceeding slowly, the clinic said many investors who fail to file their claims urgently may be barred from recourse or compensation due to the expiration of a statute of limitations.

“The statute of limitations for civil actions in court is typically two years from the date the complaint was or should have been discovered,” the report said. “The statute of limitations for IIROC arbitrations and OBSI mediations is six (6) years.

The low interest rate environment has been beneficial for investors looking to take advantage of low lending rates, the CPI said it has seen an increase in unsuitable leveraged investments, with some advisers recommending clients fund their loans. investments with loans to capitalize on low borrowing costs, even if this leaves the investor immune to the risk of rising interest rates or lower than expected investment returns.

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