banks to bear a much higher proportion of the costs of a crisis than in the past. the european commission ’ s strict interpretation of this principle means it is no longer possible to manage a crisis by resorting to the interbank deposit protection fund and the mutual banks deposit guarantee fund, without sacrificing investors, as had traditionally been the case in italy. on the one hand the new european rules on banking crises require that investor awareness be raised, as we have repeatedly said in recent years ; on the other the transparent and accurate presentation by banks of investment opportunities must be guaranteed. the implementation of burden sharing at four italian banks has been a lesson : warnings alone, however often they are repeated and included in specific brochures, cannot in themselves prevent risks to reputation and stability ; nor is it enough to tell the banks that capital instruments must only be sold to those who can fully evaluate their sometimes complex risk and return profiles. additional legislative action should be considered, mainly to take into account circumstances where conflicts of interest may be more pronounced, such as the placement with retail customers of complex financial instruments by the issuing bank. discussions on this topic are ongoing with the competent authorities. to considerations regarding bank stability, which fall within the purview of the bank of italy, must be added the no less important ones related to market integrity and the fair treatment of investors, for which consob is responsible. in order for the regulations protecting investors to be fully efficacious, the latter must be able to make proper use of the information they are given and to make wise investment choices. recent international surveys have demonstrated that public awareness of financial matters is particularly lacking in italy. we must invest in educating people on the characteristics of the most common financial instruments, on fundamental concepts such as the notion that a higher return corresponds to a higher risk and that the failure to diversify investments is always a gamble. for years, the bank of italy has supported financial education programmes in schools, with the voluntary cooperation of many teachers, and it is currently seeking to coordinate with additional private and public initiatives. but financial education must involve everyone as a matter of priority. bis central bankers ’ speeches the flow of bad debts, which swelled during the crisis, is gradually ebbing. we must now manage the legacy of the past. the guarantee scheme recently agreed with the european commission will prove useful for facilitating the divestment of bad debts. the closing of this chapter and a decisive reduction in uncertainty will allow the reactivation of this

derville rowland : unity creates strength remarks by ms derville rowland, deputy governor of the central bank of ireland, at the 37th international investment funds association conference, dublin, 9 october 2024. * * * introduction thank you to the international investment funds association and irish funds for the invitation to speak to you this morning. whether by design or fortune, the timing of this event - bringing together fund sector representatives from around the world - is fitting. after all, this event is taking place during world investor week. world investor week is an annual initiative by iosco, which focuses on providing education and information initiatives to retail investors to raise awareness about the importance of investor education and protection. this year's campaign themes are focused on actions to prevent frauds and scams, technology and digital finance and providing accessible and understandable information about the basics of investing. much like the work of the international investment funds association, iosco's mission is centred around investor protection and promoting investor confidence in the integrity of financial markets. this is increasingly important when we consider the scale of the asset management sector globally. worldwide regulated open - end fund assets stood at over $ 69 trillion us dollars at the end of the first quarter of 2024. 1 in our respective roles as firms, representative associations, regulatory bodies and public policy makers, we have a duty to ensure that all investors, whether small or large, sophisticated or not, have fair and informed access to the investment market. when we look back to the roots of investment funds and the history of how the sector has developed, we can see the value proposition they bring to investors. not least because funds can offer access to investment opportunities in a diversified and risk appropriate manner. the first investment fund, thought to have been created in the 18th century, was named for and established on the basis that'unity creates strength '. 2 this theme is as relevant today as it was then. given it is world investor week, i will focus my remarks on the needs and challenges facing retail investors and what actions we can take to support them. i will discuss the significant changes that we have seen in the retail investment market in recent years. most importantly, i will outline the actions we need to take to respond to these challenges, to ensure that the sector continues to operate in serving the evolving needs of investors and maintains the mantra that unity creates strength. the changing face of retail investments we have seen a significant reshaping of the financial sector since the global financial crisis, with capital