IOSCO Calls for Enhanced Regulatory Powers to Address Digital Retail Marketing Risks

IOSCO Report Highlights Need for Regulatory Overhaul

The Board of the International Organization of Securities Commissions (IOSCO) has emphasized the need for regulators to bolster their powers and frameworks to tackle the growing risks linked to the digitalization of retail marketing and distribution. In a report published on October 12, IOSCO outlined measures for its member countries to consider when shaping policies and enforcement strategies for online retail offerings and marketing.

Challenges Posed by Digitalization and Crypto Assets

The proliferation of digital platforms and crypto assets has introduced new challenges for regulators. These include the rapid evolution of retail marketing practices, the increasing complexity of financial products, and the potential for investor harm. IOSCO's report underscores the importance of addressing these challenges to ensure investor protection and maintain market integrity.

Proposed Measures for Regulators

IOSCO has proposed several measures to help regulators adapt to the changing landscape. These include updating regulatory frameworks to account for digital channels, enhancing cross-border collaboration, and improving oversight of emerging financial products. The organization also highlighted the need for robust enforcement mechanisms to address non-compliance.

Conclusion

IOSCO's report serves as a call to action for regulators worldwide to modernize their approaches and keep pace with the digital transformation of financial markets. By adopting these measures, regulators can better mitigate risks and foster a more secure and transparent environment for retail investors.