The International Organization of Securities Commissions ("IOSCO") published a report on senior financial fraud. The report provides member states and financial regulators with guidance on protecting vulnerable senior investors.
The IOSCO report concludes that senior investors are more susceptible to fraud as a result of declining cognitive capacity, lack of financial literacy and social isolation, among other factors. The report urges member states to (i) strengthen protective measures focused on seniors, (ii) improve financial service providers' employee training, and (iii) provide guidance on life planning issues, including arrangements for loss of capacity.
The report also issues recommendations for regulators and encourages the development of:
educational programs and resources for senior investors;
senior-focused specialists within existing assistance programs;
research on risks and issues facing seniors; and
guidelines and training programs for employees reviewing transactions conducted with senior investors.