Our partner Mauricio Jayme e Silva was featured in an article on the Bora Investir website about the financial market’s safeguards and protection mechanisms, such as the Credit Guarantee Fund (FGC) and the Loss Compensation Mechanism (MRP).
In Brazil, to safeguard investors and their investments, these and other mechanisms form a safety net, guaranteed by institutions such as the Central Bank (BC) and the Securities and Exchange Commission (CVM), whose role is directly focused on combating fraudulent practices, scams and cybercrime in the financial market.
In addition to data breaches and scams, another very common danger lies in investment opportunities touted as ‘unmissable’, which promise high returns – usually far above market rates – without any associated risk.
For Maurício, these ‘magic investments’ should immediately raise a red flag for investors. “Investors need to be aware of some immutable truths about investing: financial returns are long-term, there are no risk-free investments, and, above all, investing requires research and patience. Those who are unaware of or overlook these principles end up exposed to risks and with less protection from the safeguards and protections offered by the markets,” he explains.