The Securities and Exchange Commission (SEC) continues to empower Filipinos to make smart financial decisions as it celebrates Investor Protection Week (IPW) for the fifth year.
Taking off from the International Organization of Securities Commissions’ celebration of World Investor Week in October, the SEC on Nov. 19, 2024 launched the week-long SEC Investor Fair at The SEC Headquarters in Makati City.
“A financially literate public is key to unlocking more opportunities for growth in the capital market, and in turn the overall economy,” SEC Chairperson Emilio B. Aquino said.
He added that “as an investor champion, the SEC is leading the campaign for financial literacy by equipping the public with knowledge on how to secure their future through sound financial management and smart and sustainable investments.”
Based on the 2021 Financial Inclusion Survey of the Bangko Sentral ng Pilipinas (BSP), only two percent of Filipinos correctly answered six basic financial literacy questions. This is consistent with the finding of the World Bank that only a quarter of adult Filipinos are well-informed on basic financial concepts.
A June 2024 research paper also published by the BSP showed that middle-aged and senior individuals have lower financial literacy levels compared to younger adults.
In the same study, the BSP emphasized that greater financial literacy leads to improved financial decisions, thereby increasing the chances of participation in activities that build assets and accumulate wealth, such as investments.
“This underscores the urgent need to address gaps in the knowledge and understanding of financial management, including financial products and investment strategies, to prevent more people from falling into investment scams,” Aquino said.
In 2023, the Philippine Stock Exchange (PSE) reported a 21.2 percent year-on-year increase in retail investor participation, signifying growing interest of Filipinos in investing, particularly through online trading platforms and other financial technology innovations.
However, the country also continued to see several fraudulent investment schemes perpetuated through social media and other digital platforms. In 2023, the SEC issued 129 advisories and warnings against entities and individuals operating without the required licenses from the commission.
With the theme “Wais sa Pinansya, Sigurado sa Kinabukasan,” the SEC aims to highlight the importance of effectively managing, saving, and investing one’s money to ensure a secure future during the Investor Protection Week 2024.
Inspired by Disney Pixar’s hit film Inside Out, the SEC introduced five emotions that influence people’s financial decisions, namely: Wais, Tipid, Duda, Waldas, and Gipit.
To mark this year’s IPW celebration, the SEC is holding a week-long investor fair, with celebrity and entrepreneur Maja Salavador, as well as businessman Rambo Nuñez leading the first day with a discussion on their insights and experiences on their journey to achieve financial freedom.
The rest of the week-long celebration will feature a discussion on smart financial practices every day, based on a specific stage of a person’s financial journey, starting with handling one’s allowance, earning one’s own income, building up savings, pouring money into investments, up to creating a retirement fund.
The SEC will be joined by other institutions, including the Technical Skills and Development Authority, National Privacy Commission, National Intelligence Coordinating Agency, Philippine Stock Exchange Index (PSEI), BSP, Philippine Dealing and Exchange Corporation, Bureau of Treasury, and the Department of Information and Communications Technology to also delve into the topics of managing income, savings, and investments, as well as avoiding scams.
The public may visit The SEC Headquarters from Nov. 19 to 22 for the Investor Fair. Booths of financial products and service providers, including the PSEI, Bank of Commerce, Land Bank of the Philippines, BPI, MetroBank, Philippine Finance Association, MAYA Philippines, G-Xchange (Gcash), and COL Financial Group Inc., are also available, where they can start their investments to guide their financial journey.