By Peter OBIORA InvestAdvocate
Lagos (INVESTADVOCATE)-Global standard-setter for securities regulation, the International Organisation of Securities Commissions (IOSCO) on Tuesday unveiled its strategy framework for investors’ education and financial literacy to avoid fraud.
The report describes IOSCO’s role in promoting investor education and financial literacy and its strategic approach to both.
The global securities regulator say the strategic framework will guide the committee on retail investors’ efforts in establishing investor education initiatives that produce meaningful results for investors.
According to IOSCO, it has 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.
IOSCO affirmed that investor education is complementary to the traditional tools of regulation, supervision and enforcement, and is recognised in its guiding principles for securities regulation.
In May 2014, the global securities regulator published a consultation report for comment and received 13 comment letters. “We thank the commenters for taking the time to provide insightful feedback on the report,” said Leonardo Pereira, chair of the Comissão de Valores Mobiliários of Brazil and vice-chair of IOSCO’s committee on retail investors.
Pereira added that the committee is appreciative of the input from commenters and will keep their suggestions in mind when considering future work programs and initiatives. ‘’All of the commenters were supportive of the committee on retail investors and the strategic framework,’’ he said.
The vice-chair of IOSCO’s committee on retail investors further affirmed 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, Howard I. Wetston Q.C., chair of the Ontario Securities Commission and chair of the committee said investor education and financial literacy are a joint responsibility for investors, industry and regulators.
“We were pleased to receive support from industry as well as offers for collaboration and partnership. We hope that we continue to hear what industry and others are doing to help improve financial outcomes for investors and we will consider how we can continue to collaborate in the future,” Wetston Q.C said.
