Toronto, ON: Yesterday, the Ontario Securities Commission (OSC) published a research report that was the culmination of a collaboration with behavioural thinktank BEworks aimed at tackling the issue of financial exploitation of senior investors. The report, ‘Protecting Aging Investors through Behavioural Insights’, outlines a behaviourally informed technique developed by BEworks, which generates a 23% increase in the rate at which ageing investors appoint a trusted contact person (TCP) to help protect their investments from financial exploitation and diminished mental capacity.

The result is a welcome success in light of scientific evidence that ageing individuals can experience neurological and behavioural changes that make them vulnerable to poor financial decision-making, fraud, and exploitation.

Working towards a stronger and more secure financial future for Ontario seniors is a priority for the OSC. Thus, the commission's behavioural science experts partnered with BEworks in recognition of the fact that a behavioural science perspective was needed to develop an effective strategy for helping aging investors mitigate their risks. As part of its research effort, BEworks conducted an in-depth review of the behavioural science literature to identify the potential psychological barriers that might hold senior investors back from appointing a TCP. The resulting behavioural insights were integrated into BEworks’ design of an online form that was tested in a randomised controlled trial and found to produce a 23% increase in TCP appointment rates compared to current standard procedures.

BEworks celebrates this finding as a key contribution to the protection of elderly investors. “Our research findings illustrate the fundamental power of looking at problems through a scientific lens”, comments Kelly Peters, co-founder and CEO of BEworks. “Using behavioural insights, we have shed new light on how investors can be nudged to make decisions that help them act in their own interests. We hope that financial industry leaders take note.”

In the OSC's release publishing its report, Tyler Fleming, Director of the OSC's Investor Office said “Our research report provides registrants with practical ways to increase the likelihood that investors will appoint a Trusted Contact Person to help protect their investments. Based on behavioural insights, we know small design changes to administrative forms can nudge more investors to take advantage of these protective measures.” The full report is available at InvestorOffice.ca.