SEC Highlights Investor Protection for World Investor Week 2021
Washington D.C., Oct. 4, 2021 —
The Securities and Exchange Commission today announced that it will highlight investor education and protection resources during World Investor Week 2021 (WIW). This marks the fifth year of WIW, a global effort promoted by the International Organization of Securities Commissions (IOSCO) that brings together regulators on six continents to raise awareness about the importance of investor education and protection. The SEC is once again serving as the national coordinator in the U.S. working with the U.S. Commodity Futures Trading Commission, Financial Industry Regulatory Authority, National Futures Association, and North American Securities Administrators Association. Together with these organizations, the SEC’s Office of Investor Education and Advocacy (OIEA) issued a joint Investor Bulletin today to promote WIW’s key messages. Investor education and protection resources are available at Investor.gov.
During WIW, SEC staff will host outreach events on the benefits of investing early, making informed investment decisions, creating an investment plan, and understanding the risks and fees associated with investments; conducting a background check on an investment professional; recognizing the power of compounding interest; and learning how to avoid fraud.
“Investor protection is at the core of the SEC’s mission, and we are proud to serve as the national coordinator in the U.S. for World Investor Week,” said SEC Chair Gary Gensler. “We especially hope to reach younger investors, first-time investors, and investors in underserved communities. As markets and technology evolve, more investors than ever are able to access our capital markets. I encourage investors at every stage to take advantage of resources available at Investor.gov and ongoing outreach events in communities across the country.”
For the first time ever, Chair Gensler issued a WIW kick-off video underscoring the importance of this global initiative, and created a new “Office Hours with Chair Gensler” video about the basics of investing that will be published on his Twitter page on Wednesday. Through his new “Office Hours” videos, Chair Gensler speaks directly and plainly to America’s investors on timely topics, such as digital engagement, cryptocurrencies, climate risk disclosure, and risks involving investing in China and off-shore shell companies.
The SEC’s World Investor Week page highlights a “Term of the Day” along with corresponding video clip with definitions about microcap stocks, day trading, ESG (environmental, social, governance) investing, fractional shares, margin accounts, special purpose acquisition companies (SPACs), and index funds. On the same webpage, investors can access an investing quiz to test their knowledge of the “Term of the Day” and other key messages and themes from WIW. In addition, staff will highlight the importance of thoroughly researching and understanding the risks of online investing and investing in digital assets.
“Knowledge is power, and the best way to protect yourself is to learn investing basics, understand the risks involved with every investment opportunity, and create a long-term plan that best meets your financial goals,” said Lori Schock, Director of the SEC’s Office of Investor Education and Advocacy. “It’s especially important for first-time investors to take advantage of the online resources on Investor.gov. It’s a great first step toward protecting your money and learning how to build a smart saving and investing plan for your financial future.”
For WIW, Ms. Schock posted a new Director’s Take article, “Taking Stock in Teen Trading.” that speaks directly to parents and teens about the importance of forming a parent/teen investment partnership early on. In the article, she discusses topics such as teen trading accounts, social media influence, and apps. Through her Director’s Take articles, Ms. Schock provides investors with helpful information on timely topics.
SEC staff WIW outreach events include:
- Saving and investing presentations and webinars for diverse communities nationwide, libraries, students, teachers, seniors, and military service members;
- Presentations to college students, including an event with students from Historically Black Colleges and Universities (HBCUs) in which students will be able to ask questions of Chair Gensler;
- A Facebook Live event with AARP;
- Radio interview with Lori Schock on topics important to seniors; and
- Thrift Savings Plan (TSP) program for federal employees.
To see a list of other SEC outreach activities or learn more about WIW, please visit the SEC’s World Investor Week page.