Pakistan's capital market, non-bank financial and insurance sectors have immense potential; however, statistics clearly indicate low level of investor penetration due to lack of investor confidence and awareness about non-banking financial sector.
Main theme of the Investor Education Program will be financial planning, budgeting, market setup and operations, product features and risks, rights and obligations of user and providers of financial products, and dispute resolution. It is expected that the program, apart from creating awareness, would help the investors to take prudent measures before entering into a contractual agreement with a financial services provider, educate investors on strategies to mitigate risks associated with various investment products, engender investor confidence, and lead to an effective investor protection regime.
The program covers capital market, insurance sector, and NBFC sector including the investment banks, asset management companies, unit trusts and private pension. In addition to these regulated sectors, information would be provided on company registration and entrepreneurship.
Under the program, education would be imparted through digital means – web portal, SMS and social media – and physical interaction via seminars and investor days. Web portal is envisioned to play a pivotal role in the overall IEP as it would act as a single point learning resource for existing and potential users of financial products offered in capital market, mutual fund, pension fund and insurance industry and company registration.
Following are the primary objectives of a well-structured and efficiently implemented Investor Education Program:
- Protecting investors by educating them on their rights and responsibilities
- Empowering with knowledge to evaluate different financial products and make informed decisions
- Enable investors to understand and manage risk
- Reduce investors vulnerability to fraudulent schemes
- Expanding outreach of financial services and products
- Informed financial and retirement planning
- Participation in financial markets with esteemed confidence