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IOSCO Report on protecting aged investors

Tuesday 13 March 2018

Published recently, the International Organisations of Securities Commission’s (IOSCO) report, entitled Senior Investor Vulnerability, looks at the growing risks to senior investors and practices that can help protect them.

According to the official statement from IOSCO, “Ageing populations are a challenge to investor protection, as ageing and associated levels of physical and cognitive decline increasingly debilitate the capabilities of investors worldwide.”

The Commission’s report indicated that the biggest risk to aging investors are:

  • Unsuitable investments
  • Financial fraud
  • Diminished cognitive ability that affects sound financial decision-making
Other identified challenges include:

  • Complex products
  • Deficient financial literacy
  • Social isolation
The report offers advice for both regulators and financial services:

  • Deliver educational programs and resources targeting senior investors.
  • Foster the development of senior-focused expertise within existing regulatory, educational or advisory programs.
  • Conduct research projects to better understand the risks and issues facing senior investors and the incidence and mechanics of investment fraud that affect seniors in their jurisdictions.
  • Develop guidelines and training programs for personnel reviewing transactions conducted with senior investors
Financial Services

  • Offer support to senior investors experiencing a life event during the product lifecycle.
  • Provide training and support for employees of financial services firms.