Don't Miss

IOSCO publishes framework for investor education

By on November 8, 2014

The International Organisation of Securities Commissions has published a final report on the ‘Strategic Framework for Investor Education and Financial Literacy’.

According to IOSCO, which is the leading international policy forum for securities regulators and global standard setter for securities regulation, the framework describes its role in promoting investor education and financial literacy and its strategic approach to both.

“The strategic framework will guide the Committee on Retail Investors’ efforts in establishing investor education initiatives that produce meaningful results for investors,” it said in a statement on its website.

It explained that it had long recognised investor education as a key strategy for enhancing investor protection, promoting investor confidence and fostering investor engagement in financial planning and decision-making.

The organisation added, “Investor education is complementary to the traditional tools of regulation, supervision and enforcement, and is recognised in IOSCO’s guiding principles for securities regulation.

IOSCO had published a consultation report for comment in May 2014 and received 13 comment letters, which it said were insightful.

The Chair of the Comissão de Valores Mobiliários of Brazil and Vice-Chair of IOSCO’s Committee on Retail Investors, Mr. Leonardo Pereira, thanked the commenters for taking time to provide insightful feedback on the report.

He was quoted as saying, “The Committee is appreciative of the input from commenters and will keep their suggestions in mind when considering future work programmes and initiatives. All of the commenters were supportive of the Committee on Retail Investors and the strategic framework.

“In addition, some commenters highlighted that partnerships between securities regulators and public, private, not-for-profit and community-based organisations may provide opportunities to maximise limited resources and leverage each other’s strengths.”

On his part, the Chair of the Ontario Securities Commission and Chair of the Committee, Mr. Howard Wetston, was quoted as saying, “Investor education and financial literacy are a joint responsibility for investors, industry and regulators.”