Rwanda’s Capital Markets Authority is urging investors to verify investment information and the credentials of service providers before committing their money, warning that the growth of digital platforms has also increased exposure to fraud.
CMA Chief Executive Officer Romeo Ngarambe said technology had made investment information and opportunities easier to access, but had also created new risks for people relying on unverified sources.
“Digital platforms have widened access to investment information and opportunities, but they have also increased investors’ exposure to misinformation and potential fraud,” Ngarambe said.
He said the authority’s investor-awareness campaign was intended to give the public practical knowledge to verify information, understand investment risks and make decisions based on adequate information.
The advice is part of Rwanda’s participation in the 10th edition of World Investor Week, running from Oct. 5 to 11 under the theme “Invest in Your Future. Protect It Today.”
CMA is encouraging prospective investors to understand an investment product before putting money into it, assess the risks involved and check whether the person or company offering the opportunity is authorised to provide investment services.
Investors are also being advised to protect their personal and financial information and to be cautious of offers promising unusually high returns or pressuring them to make quick decisions.
The authority said investor education is an important part of its regulatory and supervisory work in the capital market.
World Investor Week is a global campaign focused on investor education, protection and financial literacy. CMA said its activities in Rwanda are aimed at helping people participate in the capital market with a better understanding of risks and greater confidence in dealing with licensed institutions.
