The U.S. Securities and Exchange Commission (SEC) not only has broad authority over all aspects of the securities industry but is also charged with protecting investors.1 One of the ways the SEC does this is by making educational resources available to the investing public free of charge. The Commission also promotes National Financial Capability Month each April. During the month the importance of trustworthy, accessible information for consumers making decisions about their financial lives is highlighted, with the goal of helping American households to build financial security.2 This April, the SEC debuted several new publications as part of the Commission’s ongoing efforts to assist investors.
The many free tools and resources to educate investors are available on Investor.gov 3 The website contains a wealth of information for both new and experienced investors. It also contains Investor Alerts and Bulletins that inform investors about the latest rules and regulations, scams, etc. There is even a monthly Investing Quiz to test your knowledge of investing terms and concepts.
One of the resources unveiled in April is the new Guide for Older Investors. 4 It contains information on investing basics, monitoring your accounts, adding a Trusted Contact, understanding fees, researching investments, researching investment professionals, reviewing your progress, planning for illness or diminished capacity, tapping your nest egg and learning to spot fraud. The SEC has packed a ton of valuable information into this easy-to-read 20 page resource.
Another recently available resource is an Investor Alert entitled “Artificial Intelligence (AI) and Investment Fraud.”5 Investment fraud involving artificial intelligence and other emerging technologies is a growing threat. The alert reminds investors to do their research before committing their hard-earned money to what may turn out to be a scam. This includes making sure that the securities firm, professional, exchange or other investment platform be registered as required by law. The Investor.gov website has a link where you can get information on an investment professional’s background, registration status and more.6 The Investor Alert also reminds investors that if the claimed return on investments, such as high guaranteed investment returns, sound too good to be true, it’s because it usually isn’t true. The Investor Alert also covers investing in companies involved in artificial intelligence as well as the pitfalls of relying solely on AI-generated information in making investment decisions.
These are just a few of the many resources the SEC makes available to investors as part of their mission to provide investor education. “Investors turn to our capital markets every day, whether to grow a nest egg, plan for retirement, save for an education, or prepare for the inevitable bumps along the way,” said SEC Chair Gary Gensler.7 “To be an informed investor is to be a more effective investor, and I encourage the public to take advantage of the many resources we offer on Investor.gov.”
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1 About the SEC
Link: https://www.sec.gov/about
2 April 2024: Financial Capability Month Events and Resources
Link: https://www.mymoney.gov/april-2024-financial-capability-month-events-and-resources
3 U.S. SEC Investor Education Website
Link: https://www.investor.gov/
4 A Guide for Older Investors
Link: https://www.investor.gov/sites/investorgov/files/2023-10/guideforolderinvestors.pdf
5 Artificial Intelligence (AI) and Investment Fraud: Investor Alert, 1/25/2024
Link: https://www.investor.gov/introduction-investing/general-resources/news-alerts/alerts-bulletins/investor-alerts/artificial-intelligence-fraud
6 Check Out Your Investment Professional
Link: https://www.investor.gov/introduction-investing/getting-started/working-investment-professional/check-out-your-investment
7 SEC Encourages Investors to Plan for Their Financial Future During Financial Capability Month, 4/2/2024
Link: https://www.sec.gov/news/press-release/2024-43