Key messages for IOSCO World Investor Week
- Investor Resilience
A smart investor:
- Weathers negative financial shocks with an adequate emergency fund
- Understands that risk exists in all investments
- Recognizes the importance of diversification, especially with respect to protecting investments from losses from a single, unexpected event
- Plans for life’s unexpected challenges with budgeting strategies to manage risk, reduce the impact of inflation, and avoid high interest debt
- Focuses on the impact of inflation on purchasing power and uses real rates of return to assess investment performance
- Conducts research before investing to protect against financial scams
Key messages for IOSCO World Investor Week
- Sustainable Finance
A smart investor:
- Realizes that sustainable finance may be referred to in many different ways, such as environmental, social, and governance (ESG) investing, socially responsible investing, and impact investing
- Reviews an investment's disclosure documents to see how it weighs various ESG or sustainable finance factors
- Considers whether an investment's stated approach to sustainable finance matches the investor's investment goals, objectives, risk tolerance and preferences
- Understands that each sustainable finance investment opportunity is unique, and should be evaluated on its own terms
Key messages for IOSCO World Investor Week
- Frauds and Scams Prevention
A smart investor:
- Verifies that an investment professional is licensed
- Researches investment opportunities independently before investing
- Avoids "get rich quick" and "can't lose" schemes; if it looks too good to be true, it probably is
- Never feels rushed and ignores over-the-top sales pitches and pressure to invest right on the spot
- Is suspicious of requests to wire money out of the country
- Never discloses personal information on an unexpected call or other communication
- Ensures the use of strong passwords and good data security practices such as two-factor authentication on accounts containing financial data
Key messages for IOSCO World Investor Week
- Crypto Assets
A smart investor:
- Understands the risks that are associated with crypto assets
- Does not forget about the importance of due diligence when considering any investment opportunity, including crypto assets
- Recognizes the warning signs of investment fraud
- Never invests based solely on a celebrity endorsement
The International Organization of Securities Commissions (IOSCO) is the international body that brings together the world's securities regulators and is recognized as the global standard setter for the securities sector. IOSCO develops, implements and promotes adherence to internationally recognized standards for securities regulation. It works intensively with the G20 and the Financial Stability Board (FSB) on the global regulatory reform agenda.
