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CFA survey asks investors to verify credentials, understand the education versus advice distinction, use regulated investment platform and be cautious of terminology.
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Mains Practice Question
Critically examine the implications of SEBI's decision not to penalise most finfluencers, as per a recent CFA study.
250 words
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According to a CFA survey, which action should investors take when verifying credentials?
A CFA survey advises investors to understand the education versus advice distinction, a crucial step in navigating finfluencer content.
What is one of the measures suggested by a CFA survey for investors to use when investing?
The CFA survey recommends using a regulated investment platform, which provides an additional layer of protection for investors.
Consider the following statements regarding SEBI's action on finfluencers: 1. SEBI penalised most finfluencers. 2. Most finfluencers were asked by SEBI to verify their credentials. 3. Investors are advised to be cautious of terminology used by finfluencers. How many of the above statements are correct?
Statement 1 is incorrect because the fact list states that SEBI did not penalise most finfluencers. Statement 2 is also incorrect as it implies a causal relationship between SEBI's action and asking finfluencers to verify their credentials, which is not mentioned in the fact list. However, statement 3 is correct as the fact list advises investors to be cautious of terminology used by finfluencers.