AFSA joins IOSCO’s global roadmap to retail investor online safety
AFSA has become part of a global roadmap to retail investor online safety unveiled by the International Organization of Securities Commissions (IOSCO)[1] to combat online harm, fraud and misseling that have emerged because of changing market trends and made retail clients particularly vulnerable to risks.
Retail investors are increasingly participating in capital markets, a trend accelerated by digitalisation including the use of mobile apps, social media and online platforms to promote and purchase financial products and services.
“While greater accessibility through digitalisation has expanded the capital base, increased competition and reduced costs, it has also created new risks. Retail investors are losing significant amounts of money to investment fraud, which is now often orchestrated through online paid-for advertisements and user-generated content,” said AFSA Chief Executive Officer Evgeniya Bogdanova.
The IOSCO roadmap campaign has been going on since November 2024 and ends this year. Its outcomes are the development of investor education programmes by IOSCO and culminating in the World Investor Week 2025.
The three-pronged roadmap includes:
- Regulation, through the development of new standards to manage emerging trends;
- Education, by raising awareness of investors, and,
- Collaboration, both between securities regulators and with social media and other internet services providers.
A critical component of the roadmap is empowering investors with the information they need to recognise and avoid risks associated with certain financial products and services offered to them online, with education from ground up being key in this programme.
IOSCO’s focus is on exploring the role of finfluencers[2], the emergence of imitative trading[3] practices online, and digital engagement practices employed by market intermediaries, highlighting both their potential benefits and associated risks.
IOSCO’s final reports on each of these areas provide, among others, an overview of regulatory practices and relevant tips for retail investors to better protect themselves from risks.
By joining this roadmap in the coming months AFSA will release relevant investor protection tips on its social media to break down certain myths that might trap retail investors into potential fraud.
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Reference:
The Astana Financial Services Authority (AFSA) is the independent regulator of the Astana International Financial Centre (AIFC), which is established in accordance with the Constitutional Law of the Republic of Kazakhstan “On the Astana International Financial Centre” for the purposes of regulating financial services and related activities in the AIFC. AFSA administers the AIFC Regulations and Rules and is responsible for the authorisation, registration, recognition and supervision of financial firms and market institutions in the AIFC.
Over 4,000 firms from 84 countries are registered in the AIFC. These firms provide banking, insurance, investment, professional and other services. The range of financial services offered at the AIFC is comparable to the list of services available in long-established financial centers of the world, such as London, Hong Kong, Singapore, Dubai and others. www.afsa.kz
The Astana International Financial Centre (AIFC) is an independent jurisdiction with a favourable legal and regulatory environment and a developed infrastructure for starting and doing business, attracting investment, creating jobs and developing Kazakhstan’s economy. https://aifc.kz/
Contact information:
Public Relations and Communications Division of AFSA: +7 (717) 264 73 43; +7 7172 61-37-45 email: [email protected]
[1] The International Organization of Securities Commissions (IOSCO) is the leading international body that brings together securities market regulators from around the world.
[2] Finfluencers (from the English “financial influencers”) are individuals, bloggers, or content creators who publish information, advice, or personal opinions on finance, investments, cryptocurrencies, the stock market, and other financial topics on social media and online platforms.
[3] Imitative trading (also known as copy trading or mirror trading) is a form of investing in which individual investors replicate the trading decisions of other, more experienced or popular market participants.
