Report on Scams, Conduct, Greenwashing and Market Conduct

More must be done for scams, greenwashing, market misconduct and fraud.  
 

This is the call of the International Organisation of the Securities Commissions (IOSCO) in their Retail Conduct Market Task Force Final Report.
 

The report highlighted some thematic issues:
 

• Technological advances and social media have impacted market conditions for retail trading activity.  
• Digitisation is a two-sided coin of rising opportunity and risks.
• Consumer issues around ‘amplified risk raking’, information overload, difficult-to-understand complex products, and social, psychological and financial issues.
• More unlicensed activity, scams, fraudulent or harmful behaviour
• Increased greenwashing risk

This report is by the Retail Market Conduct Taskforce, of which the Australian Securities and Investments Commission is a key member. The task force addressed retail market conduct and related trends and risks.  
 

The regulator indicated that the report will inform the conduct regulator’s strategic priorities.
 

ASIC Chair Joe Longo said in an official statement, “Scams, misconduct, and harmful practices targeting retail investors do not respect borders. ASIC co-chaired the task force that wrote the report and supports recommendations to strengthen international cooperation to mitigate cross-border misconduct and share surveillance data and intelligence.”
 

Longo added that challenges in market conduct do not respect borders.