Investor education

Is there a need for greater financial literacy in  the digital age?

In the digital age endless amounts of information on funds is readily available. But often this information is provided by specialists and not easy to understand. In addition the need for retirement saving by individuals is increasing in Europe. Challenging demographics and public deficits means that the typical standardized state-run pension system is likely to provide less support in the future. Hence improving financial literacy is still a challenge that the financial sector has to support. Savings habits in the EU are still very different, we believe continental Europe has still a lot of opportunities to increase the population’s appetite to invest in securities and investment funds.

How is Luxembourg positioned in investor education?

Given the size of the fund sector Luxembourg is well positioned to support greater financial literacy. Playing an active role in investment funds innovation (e.g. FinTech, RegTech, Web 3.0), Luxembourg is willing to be at the forefront for creating digital investor education platforms.

What are ALFI initiatives in this field?

Though the Investor Forum participants from the fund industry supports investor education. One specific initiative is the web page www.understandinginvesting.org. The page targets potential investors with no prior expertise in investing and includes several podcasts of topics as “what is a UCITS fund?” and “the cost of investing”. ALFI has always been a strong advocate to inform investors about the appropriate use of investment products tailored to the investor’s profile and appetite.

    

Simon Ramos, Deloitte and Kim Pilgaard, Nordea

Co-chairs ALFI Investor Forum