IFIE’s Code of Practice has been developed by practitioners as a form of guidance or “best practices” for organizations involved in providing investor education to the public.
IFIE Code of Practice
The International Forum for Investor Education (IFIE) was established with the understanding that investor education can contribute to the growth and stability of financial markets. Quality investor education provides consumers with the skills, knowledge and confidence that will allow them to make informed judgments regarding their own investments and financial well being.
To promote the highest standards for investor education on a global basis, IFIE members agree that they will make best efforts to provide or support investor education programs that:
- Are provided in a fair and unbiased manner and refrain from recommending specific products, services, investment strategies, institutions and/or individuals;
- Strive to ensure that consumers gain at a minimum a general understanding of core financial concepts, the risks and returns associated with different types of financial assets and some understanding of their own tolerance for risk;
- Take into account the level of sophistication and needs of the consumers to whom the programs are addressed, which ideally will be determined through consumer consultation and focused research;
- Make a commitment to consumers as life-long learners, with programs that take into account the increased complexity of markets, financial products and the varying requirements of consumers at different stages of their lives;
- Include, when possible, initiatives addressed to specific demographics, taking into account their specific needs, level of understanding and accessibility;
- Use plain language, familiar tools and readily accessible media in order to communicate with the largest number of participants;
- Use a variety of approaches in order to enhance the learning process;
- Clearly address how investors might protect themselves and resolve disputes, including references to relevant organization(s) providing investor protection services;
- Undergo regular assessments in order to ensure that programs are current, effective and meet consumers’ needs; and,
- Whenever possible benefit from partnerships with like-minded organizations, including regulatory and other official providers or sponsors of investor education.