01 March 2018
The International Organization of Securities Commissions (IOSCO) has published the report, Senior Investment Vulnerability (Report), examining growing concerns regulators have about the risks to ageing investors to financial fraud and other risks and identifies sound practices for enhancing their protection.
The Report shows that seniors are at a higher risk than other investors of losing money to fraud, and regulators face challenges with respect to protecting this investor population. The biggest risks are unsuitable investments and financial fraud, particularly relating to complex products. These vulnerabilities are growing just as many investors assume greater responsibility for their own retirement and financial future.
The Report discusses IOSCO members’ views and experiences regarding senior investor vulnerability and recommends sound practices for both regulators and financial services providers and includes a non-exhaustive bibliography of literature that may be helpful to regulators and others.
Sound practices suggested for regulators include:
Sound practices suggested for financial service providers include: (a) offering support to senior investors experiencing a life event during the product lifecycle; and (b) providing training and support for employees of financial services firms.
@ 2018 CCH Incorporated and/or its affiliates. All rights reserved.