FOCUS ON: IFIE REGIONAL SUBCOMMITTEES
INVESTOR EDUCATION AROUND THE GLOBE
IFIE MEMBER PROFILE
I want to take this opportunity to update you on
what has been a very busy and productive period for the International
Forum for Investor Education:
- Calendar year 2008 saw a major burst of new
interest in IFIE membership, with five organizations either joining
during the calendar year or in the process of doing so. The ranks of
our organization now stand at 20 and could easily grow to 30 over the
next six to 12 months.
- On 4 December 2008, IFIE held its first
Webinar, a session that focused on how investor education can help to
rebuild investor trust and confidence in the wake of ongoing market
turmoil. We plan to hold up to two additional Webinar sessions during
LET US KNOW ...
IFIE wants to know what you think about Investor Education News @ IFIE.
Please let us know if you have ...
Feedback about how to make this e-newsletter more useful to you.
News to be included in future issues.
Papers, reports or other initiatives that could be featured here.
Contact information for other investor professionals who may be interested in receiving this newsletter.
Send your emails to firstname.lastname@example.org.
- During the second half of 2008, IFIE
decided to expand its global efforts with a set of regional
subcommittees to promote the more rapid spread of investor education
programmes. The Egyptian CMA approached IFIE about making the Middle
East North Africa (MENA) the first regional subcommittee and offered to
spearhead this effort. The CMA was extremely successful in establishing
the subcommittee and the formal creation was ratified at the IFIE
Membership Meeting on 3 March 2009. (For more details on this see the "Focus On:" article below.)
- Most recently, the 2nd joint investor
education conference of IFIE and International Organization of
Securities Commissions (IOSCO) took place on 2-3 March 2009. The
extremely successful event in Washington, D.C. attracted more than 100
attendees from 31 nations. IFIE and IOSCO are now in discussions to
hold a third joint conference during 2010.
IFIE members will shortly be receiving a survey
requesting ideas for IFIE activities and soliciting your participation
in organizing IFIE activities. We hope you will participate in the
survey and generously commit your time, energies and ideas to our
programme. Your IFIE organization is entirely reliant on the efforts of
its members to operate a successful programme. The balance of 2009
promises to be busy for IFIE and we will need your help to make it a
successful year. As always, I welcome your comments and feedback about
the work of this organization.
International Forum for Investor Education
In 2008, IFIE started to focus on the potential of
creating regional subcommittees for investor education purposes. The
goal of IFIE regional subcommittees is to leverage the strong cultural
ties and common investor issues in regions to accelerate the development
and delivery of investor education programmes.
IFIE's regional efforts bore their first fruit
earlier this month. At the Membership Meeting on 3 March 2009, the IFIE
membership created two new subcommittees. The IFIE Regional
Subcommittee will be composed of the chairmen of a new group of regional
subcommittees comprised of IFIE members with common regional interests.
The IFIE Regional Subcommittee will send one representative to the IFIE
Advisory Committee and the Advisory Committee will send one member to
each of the Regional Subcommittee's meetings.
The second subcommittee launched at the IFIE
Membership Meeting was the IFIE MENA (Middle East North Africa)
Subcommittee. The Egyptian CMA approached IFIE in the middle of 2008
with the idea to create an IFIE MENA Regional Subcommittee and offered
to help organize such a group. The idea was met with enthusiasm by the
IFIE Advisory Committee and the Egyptians were given authorization to
commence their efforts. The concept has been received positively in the
region. The Egyptians identified 13 potential members and all 13 have
indicated interest in joining IFIE and the Subcommittee. Two of the
organizations are already existing IFIE members, another two have been
processed as new members in recent weeks and two more are expected to be
enrolled as new members shortly.
The IFIE MENA Subcommittee was chartered to operate as follows:
- All members of the subcommittee must be a member of IFIE;
- The subcommittee agenda will be created in concert with and approved by the IFIE Advisory Committee; and
- A member of the IFIE Advisory Committee will be invited to each subcommittee meeting; and
At the IFIE Membership Meeting on 3 March 2009, Steve
Joachim, IFIE chairman, and Dr. Ahmed Saad, chairman of the Egyptian
CMA, formally signed the documents creating the IFIE MENA Subcommittee.
Dr. Saad was appointed chair of the IFIE MENA Subcommittee and chair of
the newly formed IFIE Regional Subcommittee. He will also join the
IFIE Advisory Committee as the Regional Subcommittee representative.
Formed in 1989, the Investment Company Institute Education Foundation
(ICIEF), the educational affiliate of the Investment Company Institute,
partners with government agencies and other nonprofit organizations to
help promote or enhance investor awareness on behalf of the mutual fund
industry. Since 2000, the Foundation's primary focus has been the Investing for Success
program and partnerships. Launched in May 2000 with the National Urban
League (NUL), Investing for Success was initially designed to strengthen
investor awareness in the African-American community. Workshops
co-sponsored by these two organizations are presented by mutual fund
industry professionals from Investment Company Institute member
companies. The U.S. Securities and Exchange Commission, Department of
Labor, and American Savings Education Council, among others, have all
contributed materials used during the workshops. Neither the workshop
presenters nor the materials promote any commercial products or services
or specific professions, firms, or individuals. For those unable to
attend a workshop, ICIEF launched an award-winning web course in May
2001 that integrates all the workshop materials in an interactive,
multimedia format. The web course features 10 self-paced lessons that
include interactive worksheets and calculators, animated illustrations,
video clips of investors and investment professionals, related online
resources, and quizzes that offer immediate feedback. Anyone who
completes all 10 lessons can print a customized certificate of course
The Jersey Financial Services Commission
published the findings of mystery shopping research conducted into the
suitability of advice provided by regulated investment advisers. The
mystery shopping research was conducted on behalf of the Commission's
Investment Business division by Deloitte & Touche LLP, supported by
GfK Mystery Shopping. Mystery shoppers approached 13 local investment
advisers seeking advice in relation to a lump sum investment of either
£8,000 or £100,000. The appointments with each investment adviser
were recorded and the advice was analysed against regulatory benchmarks.
The analysis found that overall, the advice provided was appropriate
but the report did highlight some areas of improvement. One particular
highlighted finding was that a number of those shoppers seeking to
invest £8,000 had difficulty in obtaining advice. The report does not
name those firms involved in the research however, the Commission will
be providing specific feedback to each firm sampled. A copy of the
report can be viewed here.
CAPITAL MARKET AUTHORITY OF EGYPT
Formed in 1979 as an independent regulator for the
Egyptian Securities Market, the CMA is a government agency with the
mission of: "protecting investors from non-commercial risks,
developing the capital market, maintaining its integrity, minimizing
market risks and applying the principles of fairness and transparency."
With the aim of achieving this strategic mission, the CMA has
identified main work plans and programs to be implemented which reflect
their priorities in developing and regulating the Egyptian capital
market and enhancing the efficiency of the regulatory performance. These
plans are divided into four main principles:
- Developing the Capital Market structure (primary and secondary markets);
- Raising investors' awareness.
- Providing technical support for Securities firms; and
- Institutional Capacity building and improving CMA's regulatory capabilities.
This is in alignment with the CMA vision to enhance
the market's efficiency and competitiveness in order to attract local
and foreign savings to invest in Egypt. This vision is being realized
through the application of the international standards and practices
prevailing in advanced and emerging Capital Markets (such as IFRS, IOSCO
principles, corporate governance principles, and FATF recommendation)
so that the Egyptian Capital Market becomes a pioneer at the regional
level among Middle East and African markets. For the CMA, the year
2008 focused on enhancing and strengthening its regulatory role. New
auditing standards were issued in accordance to the international
standards. In addition to this, Auditor's oversight board was
established to auditors of the listed companies, securities companies,
mutual funds and underwriting of IPO's companies. And in its efforts to
educate the investors and raise their awareness about the capital market
of Egypt, the CMA joined the IFIE as an active member on both the local
and international aspects via launching its new educational website (www.iinvest.org.eg)
and helped in creating the IFIE MENA subcommittee. And as a result of
the efforts exerted by the CMA, it was chosen in 2008 as the second most
innovative regulator in Africa.
Back to Top