SEC Encourages Investors to Choose Their Information Sources Wisely During World Investor Week

World Investor Week (WIW) 2024, scheduled for October 7-13, brings a significant reminder from the Securities and Exchange Commission (SEC) to investors—select reliable and unbiased sources of information when making investment decisions. Whether you’re evaluating investment professionals or determining which financial products align with your goals, ensuring that your information comes from trustworthy sources is crucial.

The Global Impact of World Investor Week

What is World Investor Week?

Now in its eighth year, WIW is a global initiative promoted by the International Organization of Securities Commissions (IOSCO). This campaign unites regulators across six continents to emphasize the importance of investor education and protection. In the U.S., the SEC plays a central role as the national coordinator, collaborating with several financial regulatory bodies such as the Commodity Futures Trading Commission (CFTC), Financial Industry Regulatory Authority (FINRA), and the Securities Investor Protection Corporation (SIPC). These organizations, along with others, have joined forces to promote WIW’s key initiatives through a joint Investor Bulletin.

Investor Education and Protection at the Forefront

Key Outreach Events During WIW

Throughout World Investor Week, SEC representatives across the country will host a variety of educational events to help investors navigate the complex financial landscape. These events will focus on fundamental topics like saving and investing while covering essential areas of concern, such as:

– **Conducting Background Checks on Investment Professionals**: Investors will be educated on how to research the backgrounds of financial advisors and professionals to avoid potential fraud or conflicts of interest.

– Monitoring and Securing Investment Accounts: Proper account management and security measures are critical in safeguarding one’s investments. The SEC will provide guidelines on protecting your financial data and accounts from unauthorized access.

– **Avoiding Unsolicited Investment Pitches**: Investors will be warned against unsolicited and often fraudulent investment offers, which can lead to substantial financial loss.

– **Understanding the Role of Finfluencers**: With the rise of social media influencers, known as “finfluencers,” who offer financial advice online, the SEC will stress the importance of verifying any investment information shared via these platforms.

– **Latest Trends in Investment Fraud**: One of the primary focuses will be raising awareness about new and evolving investment scams, including relationship investment scams, cryptocurrency fraud, financial grooming schemes, and “pig butchering” scams.

**SEC’s Mission: Protecting Investors**

**Empowering Investors Through Education**
“Investor protection is at the core of the SEC’s mission,” says SEC Chair Gary Gensler. He encourages the public to participate in WIW events and explore the resources available on **Investor.gov**, the SEC’s official platform for investor education. By offering these resources, the SEC aims to arm investors with the knowledge they need to make informed financial decisions and protect their assets from fraud.

**Emerging Financial Trends and Their Impact on Investors**
With emerging technologies, social media, and aggressive marketing around investments becoming increasingly popular, investors face new challenges. Lori Schock, Director of the SEC’s Office of Investor Education and Advocacy, acknowledges the potential confusion surrounding these trends. She advises investors to utilize **Investor.gov** for accurate, unbiased financial information, especially when faced with the influence of platforms like social media.

“Emerging technologies such as AI, finfluencers, and social media can make it difficult for investors to discern reliable information,” Schock says. “That’s why our website offers free tools and educational resources to help investors avoid falling prey to scams or misleading advice.”

Finfluencers and Celebrities: Should You Trust Their Advice?

Navigating Social Media’s Influence on Investing
In conjunction with WIW, Lori Schock has published a new article titled, “Finfluencers, Celebrities, Social Media: Should You Listen to Them?” This piece urges investors to approach social media-driven investment advice with caution. Schock advises investors to conduct their independent research and avoid making decisions based solely on social media content, which may lack credibility or transparency.

The SEC’s WIW webpage also includes interactive elements, such as a quiz, to help investors test their knowledge of essential investing concepts. These tools aim to foster a deeper understanding of sound financial practices, empowering investors to make better decisions.

**SEC’s Nationwide Outreach Events**

**Reaching Diverse Communities Across the U.S.**
Each day during World Investor Week, the SEC will conduct outreach events, both virtually and in person, targeting a wide array of audiences. These events will cover critical topics related to saving, investing, and fraud protection, with special emphasis on the following groups:

– **Older Investors and New Investors**: Special presentations will be tailored for these audiences, highlighting safe investment strategies and ways to avoid fraud.

– **Military Service Members and Their Families**: Recognizing the unique financial needs of military families, the SEC will offer dedicated resources and educational sessions for them.

– **Underserved Communities**: The SEC is committed to ensuring that all communities, particularly underserved populations, have access to vital investment knowledge.

– **High School and College Students**: The SEC will provide classroom activities and events at Historically Black Colleges and Universities (HBCUs) to promote financial literacy among students.

– **Federal Employees**: The Thrift Savings Plan program will be featured in educational sessions for federal workers, helping them understand their retirement savings options.

**Educational Events to Look Forward To**
These outreach efforts aim to reach a wide variety of demographics, ensuring that no group is left behind when it comes to investor education. From high school students to veterans reentering civilian life, the SEC is dedicated to promoting sound financial practices and safeguarding investments from fraud.

Throughout World Investor Week, radio interviews and live presentations will help amplify the message, focusing on the latest investment trends and the importance of informed decision-making.

By staying informed and utilizing trusted resources like **Investor.gov**, investors can take charge of their financial future while staying protected from the ever-evolving landscape of investment fraud.

SEC Press Release