Page 20 - Unlicensed Digital Investment Schemes (UDIS)

investment and telecommunication sector, to ad- share information about such schemes and create an
dress the growing UDIS problem. international platform for knowledge sharing.
a) Terms of references for such an entity are to be iii. This entity could also engage in public interest ad-
drafted by regulators and quasi-regulatory bodies vocacy to protect consumers, and obtain redress for
interested in taking an active and formative role victims of UDIS. Such work could be done in concert
in such a body. The initial suggested activities of with national consumer protection bodies as well as
such a body are as follows: with civil society.
b) Aggregate and share data on the problem of UDIS iv. A membership structure for such an entity is pro-
globally (including the establishment of an inter- posed which aggregates both national financial and
national UDIS watch list).
telecommunications regulatory bodies as members,
c) Conduct research on prevention, including con- and could be funded by one or more of the following
sumer education and financial literacy. mechanisms:
d) Conduct awareness raising for national regulators, a) Payment of membership fees by States;
governments, law and policy makers on the scope b) Private foundation donations.
of the problem.
c) Contributions from financial institutions’ corpo-
e) Advise on how to improve monitoring of markets rate social responsibility (CSR) funds.
for UDIS and best practices in terms of closure and
prosecution, techniques to track and salvage as v. Contributions from national asset seizures from con-
much of the related assets as possible. victed UDIS criminals, as a result of the new entity’s
assistance or involvement, or a combination of the
ii. This entity would also have the mandate to bring fi- above.
nancial services and telecom regulators together to

18 • Unlicensed Digital Investment Schemes (UDIS)