STRATEGY
INTRODUCTION
About the ‘I Learned the Hard Way’ campaign
The Cayman Islands Monetary Authority (CIMA) has recognised that investment mis-selling is a growing issue amongst registered entities. There have been cases where investors have misunderstood agreements or have been inappropriately advised about the risks of investing.
In response, CIMA has developed a campaign to better educate existing and potential investors. Under the theme ‘I Learned the Hard Way’, the aim of the programme is to enhance financial education and empower investors to take control of their financial lives. A series of tips will also help investors make informed decisions when conducting financial business.
WHY
Financial education matters
Making informed financial decisions is more important than ever before as the market has become increasingly more sophisticated with a plethora of options for investing, borrowing, and saving. Investors who are not financially literate are more at risk of fraud and illegal investment opportunities.
CIMA has a corporate obligation to promote and enhance market confidence, consumer protection and the reputation of the Cayman Islands as a well-respected financial centre. To continually meet this responsibility, CIMA aims to support financial education.
Financial education is important because it equips persons with knowledge to make better financial decisions. Becoming more aware of investment risks and opportunities, knowing where to get legitimate help, and taking appropriate actions to address issues can help to improve your financial life.
WHAT
Improving financial well-being
We each have our own story to tell when it comes to money, some of which come with both positive and negative experiences. These experiences guide our financial attitudes and behaviours, and the more we understand our approach to investment the more opportunities we have to improve our financial wellbeing.
This campaign identifies the following areas which may empower investors to take control of their financial lives:
- Choosing an investment that is right for you
- Understanding the risks
- Understanding an agreement before signing
- Making informed decisions
- Recognising the red flags
HOW
Working together
For years, various organisations and agencies across the local financial services community have worked together to strengthen financial literacy among investors, both locally and abroad.
CIMA is also actively addressing a number of strategic priorities to keep investors and consumers better informed.
The basis of these efforts is to:
- Educate - Providing informational tools to help consumers and investors develop and enhance their financial lives
- Inform - Sharing knowledge about the risks associated with financial investment opportunities so that persons can make informed decisions.
- Support - Collaborating with others to help persons better understand their situation, assess their choices and avoid potential losses.
As each sector differs, there is no one-size-fits-all approach. However, with the right education, information and support, we can all make a difference.