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Sep 18, 2015

Eurex | Eurex Group

“Sound Practices for Investment Risk Education” from the IOSCO

The International Organization of Securities Commissions (IOSCO) has regularly noticed retail investors losing money they did not expect, or could not afford, to lose because of a misalignment between the investor’s understanding of the risk (and the level of risk that is appropriate for them) and the actual level of risk to which they may be exposed through an investment. This misalignment leads to uninformed decision-making, potentially causing investors significant financial loss and emotional harm. Based on an analysis, the members of the IOSCO Committee 8 on Retail Investors (C8), have developed a number of sound practices for investment risk education initiatives and published it in this report.

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