By Peter OBIORA InvestAdvocate
Lagos (INVESTADVOCATE)-Global securities regulator, the International Organisation of Securities Commissions (IOSCO) said on Wednesday it has unveiled its report on how investors can protect themselves against investment fraud.
The survey titled “Survey on Anti-Fraud Messaging” describes strategies used by some securities market regulators to educate individual investors about how to protect themselves against investment fraud.
IOSCO says the report provides information and real examples of strategies that may help other of its members identify effective methods of educating investors about investment fraud.
The world securities regulator added that the report is based on a fact-finding survey of the members of IOSCO´s Committee on Retail Investors gathering information on issues such as, types of fraudulent securities offerings or investment schemes in which investors have been victimized; common characteristics of such offerings or schemes and common characteristics of victims of investment fraud.
Other issues include content of anti-fraud messaging; communication channels used to deliver anti-fraud messages; and efforts to evaluate the effectiveness of anti-fraud messaging strategies.
“Survey responses indicated that investment fraud has many of the same characteristics across jurisdictions. Fraudsters cold-call investors or send unsolicited emails, offering unrealistic returns or using other high-pressure sales or persuasion tactics,” IOSCO affirmed.
According to the global securities regulator, in addition to raising awareness about common persuasion tactics, survey respondents also issue a similar variety of anti-fraud messages: “Some warn against specific scams, but most focus on the importance of dealing with a registered investment professional (and to some extent, a registered investment product),” the Commission added.
The report disclosed that IOSCO surveyed also use a variety of communication channels to send anti-fraud messages, “although the most common is the traditional website,” a statement from the world’s securities regulator, said most respondents are exploring innovative methods to reach retail investors, including mobile apps, video games and multi-media public awareness campaigns, and collaborate with others in their jurisdictions to spread anti-fraud messages.
“This report illustrates with concrete, creative and innovative examples taken from many parts of the world, how regulators are engaged with investors to raise awareness of investment fraud,”said Howard Wetston, Q.C., vice chair of the IOSCO board.
Wetson who also chairs the committee on retail investors and the Ontario Securities Commission, Said he trust that the report will be a helpful source for regulators in developing their own strategies to prevent fraudulent behaviours.
