IOSCO published its report on Sound Practices for Investment Risk Education. Based on an analysis of the approaches adopted by the members of the IOSCO Committee 8 on Retail Investors, the sound practices for investment risk education initiatives include those detailed below.
- Focus on influencing retail investor attitudes and behaviour, as well as knowledge.
- Develop initiatives that take an evidence-based approach in response to the needs of retail investors.
- Test initiatives with the target audience.
- Develop initiatives that reach people close in time to the making of investment decisions and that are promoted in a variety of ways to expand reach and interaction.
- Send clear messages that are adapted for different target groups (e.g. beginner and more savvy investors) and for the different ways people access information.
- Use engaging content and delivery styles.
- Design activities that are current and up to date with emerging new technologies and developments in financial markets.
- Where relevant, develop investor education initiatives that complement regulatory actions to enhance impact.
- Develop evaluation frameworks and measures at the outset and seek to evaluate outputs and outcomes.