Investor protection comprises the rules, mechanisms and institutional arrangements designed to safeguard investors from unfair, abusive or fraudulent practices in financial markets, reducing information asymmetry and ensuring access to redress.
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- Investor protection measures include disclosure obligations, conduct rules for intermediaries, suitability assessments and mechanisms for redress. They aim to reduce information asymmetry and misconduct in markets.
- Regulators enforce these measures through authorisation, supervision and sanctions. Protections extend across securities, funds and, under newer frameworks, certain crypto-assets.