IOSCO issues guidance on investor education

As it kicks off the third annual World Investor Week (WIW), the International Organization of Securities Commissions (IOSCO) is publishing guidance that aims to foster the development of investor education initiatives.

IOSCO has issued its financial literacy framework, which is designed to help regulators and providers of investor education develop and implement education programs.

Among other things, the framework provides guidance on the content of these sorts of programs, and sets out areas that can be used to evaluate the efficacy of investor education efforts.

“The objective of the framework is to better prepare investors to navigate an increasingly complex investing environment,” IOSCO said.

“It seeks to equip investors with core competencies that enable them to make informed decisions about how to diversify investments, reduce risk or choose suitable investments, among other things,” it added.

The new guidance coincides with the launch of IOSCO’s annual investor ed campaign.

IOSCO said that, throughout the week, securities regulators, stock exchanges, investor associations and others will be offering an array of activities — such as workshops, games and contests — to increase awareness of investor education and investor protection in almost 90 countries.

In particular, IOSCO said technological innovation is a key focus this year.

“This year’s WIW not only seeks to promote the basics of smart investing but also to ensure that retail investors understand the risks associated with online investing, digital assets and initial coin offerings,” it said.

James Langton

James is a senior reporter for Advisor.ca and its sister publication, Investment Executive. He has been reporting on regulation, securities law, industry news and more since 1994.