June 2025

This month, we’re unpacking how social media influencers are shaping the decisions of self-directed investors—and what the data reveals about their real impact. We’re also spotlighting a setback in regulatory progress on climate and diversity disclosures, and why it raises fresh concerns about transparency in Canadian markets. We’d love your feedback: under What’s New, take our quick survey and let us know how we can improve our newsletter to better serve you.

Finfluencers: Are You Buying It?

More Canadians are investing on their own instead of working with an advisor—like a mutual fund salesperson at a bank or an advisor with an independent investment firm.

Research by FAIR Canada, the B.C. Securities Commission (BCSC), and the Canadian Investment Regulatory Organization (CIRO) shows that a significant number of Canadian investors manage at least part of their investment portfolio themselves.

What sources of information are these do-it-yourself (DIY) investors using? Increasingly, the answer is social media and financial influencers, also known as “finfluencers.” According to the BCSC’s research, DIY investors are much more likely than other investors to rely on social media and finfluencers. As finfluencers continue to gain traction, understanding their influence on investor behaviour is more important than ever.

If investors put too much trust in the wrong sources, such as the recommendations of finfluencers, they could make

harmful investment decisions.

Do Finfluencers Know What They’re Talking About?

Not all finfluencers are the same. Some genuinely educate investors, while others prioritize monetization—promoting paid content over sound advice.

A study by the Swiss Finance Institute (SFI) found that:

• Most finfluencers provide advice that leads to lower investment returns, or has no impact on investment returns.

• The ones whose advice leads to positive investment returns tend to have fewer followers than their unskilled or less-effective peers.

Do Investors Question Enough?

A recent report from the Ontario Securities Commission (OSC) highlights this issue surrounding retail investors and finfluencers:

• It found that 35% of investors made financial decisions based on advice from a finfluencer.

• Yet, more than 80% of investors also believe finfluencers are primarily motivated by self-interest, such as making money or growing their personal brands.

Investors wary of social media may still trust certain finfluencers. The OSC’s survey reveals that those who follow finfluencer advice often see them as knowledgeable and reliable. CIRO’s research shows many investors value social media advice as much—or more—than guidance from financial advisors.

Why This Matters

If investors put too much trust in the wrong sources, such as the recommendations of finfluencers, they could make harmful investment decisions. Given the SFI’s research about finfluencers’ skill levels and follower counts, this is a significant concern.

The OSC’s survey indicates a potential link between finfluencer influence and investor harm. For example, these investors are:

If you’re managing your own investments or following finfluencers online, it’s crucial to understand the risks. Check out these resources from the OSC, BCSC, Chambre de la sécurité financière, and CIRO. 

Pausing Climate and Diversity Disclosure: A Step Backward for Investors

The Canadian Securities Administrators (CSA) recently paused plans to introduce rules that would require public companies to disclose more detailed information on climate-related risks and diverse leadership. This decision delays long-awaited rules that would provide investors with more consistent and comparable information about climate risks. It also stalls progress toward greater transparency around diversity beyond gender representation on corporate boards and in executive positions.

Stronger disclosure rules would boost transparency, modernize Canadian markets, and align Canada with international standards.

This decision is a major setback for investors. The regulators proposed the rules to help investors understand how companies manage climate risks and foster diverse leadership.

Without clearer standards, investors are left with inconsistent or incomplete disclosures, making it harder to make informed decisions.

The delay marks a significant shift in regulatory priorities. Climate-related and diversity disclosure were previously identified as key goals for the CSA and Ontario Securities Commission.

Although they’ve been paused, the urgency of climate change and inclusive leadership remains. Investors still need better information to guide their decisions.

The CSA cited competition concerns as a reason for the pause and said they will focus on projects that improve market competitiveness. But the pause undermines this very goal. Stronger disclosure rules would boost transparency, modernize Canadian markets, and align Canada with international standards. This would enhance our competitiveness and help Canada attract global investors.

The CSA has not set a timeline to revisit its decision or outlined enforcement plans for current disclosure requirements. A targeted review of climate-related and diversity disclosures could help ensure companies comply with existing rules. However, the announcement included no such plans and did not commit to reconsidering the pause, leaving investors uncertain.

Investors deserve transparency.

We urge the CSA to enhance disclosure in these areas, fostering a more modern, accountable, and competitive regulatory framework that better serves investors.

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Throughout the year, FAIR Canada (Canadian Foundation for the Advancement of Investor Rights) submits many comment letters on various important policy and regulatory matters that have an impact on investors. Read more about our investor advocacy work.

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To learn more about our advocacy for investors, visit FAIRCanada.ca