Responding to concerns from investors, the Ontario Securities Commission has launched a new multilingual brochure to help investors understand the risks associated with Registered Education Savings Plans, including often-misunderstood Pooled Group Scholarship Trust Plans.

Saving for your child’s education: Get the facts about RESPs before you invest discusses Self-Directed RESP accounts, Pooled Individual and Family Scholarship Trust Plans, and Pooled Group Scholarship Trust Plans, in the context of risk and return, costs, and cancellation policies.

The OSC says its Contact Centre often receives inquiries from investors who do not understand the plans they have signed up for, the fees they could potentially pay if they stop payments and the risks they are taking with their money. This new brochure is an attempt to raise awareness about these issues.

“The RESP market has grown quickly over the past few years, and we feel it’s important for all investors to have a thorough understanding of what they’re getting into,” said Terri Williams, Manager, Investor Education at the OSC, in a news release.

In addition to specific information about the types of RESPs, the brochure also provides general tips and an outline of the Canada Education Savings Grant available to RESP investors.


The brochure is available in English, French, Chinese, Russian, Tamil and Polish.

Investors can request a free copy of the brochure by calling 1-877-785-1555 or they can view the material on the OSC web site at www.osc.gov.on.ca. The brochures can be found on the Required Reading page of the Investor Resources section.