Latin American Capital Markets

74 GEORG WITTICH, ETHIOPIS TAFARA, AND ROBERT J. PETERSONengaged in the same type of activity (for example, energy suppliers)—where accessto the website is restricted to these members. 9Internet Use by Securities RegulatorsSecurities regulators use the Internet to educate investors and ensure regulatorytransparency. In particular, regulators use the Internet to do the following:• Provide a database of registrant filings that is readily accessible by investors• Advise investors regarding the risks of various investments and types oftrading• Warn investors against types of fraud• List registered issuers and intermediaries (including registered representatives)• Post new regulations and solicit public comment on proposed regulations• Receive investor complaints• Post litigation and press releases• Assist investors' research by providing hyperlinks to websites of self-regulatoryand international organizations• Post decisions in enforcement matters• Provide a list of websites identified as advertising fraudulent schemes or unlicensedactivity.Regulators likewise spend considerable resources monitoring Internet securitiesactivity. Many have established Internet surveillance programs with staff trainedto detect and investigate securities fraud conducted via the Internet. Regulators haveorganized international sessions to discuss surveillance techniques and trends in Internetfraud.Today, instead of simply monitoring the medium, regulators use the Internetas a tool for international enforcement and cooperation. It can serve as a source ofinformation regarding foreign individuals or entities whose activity is subject to investigation.For example, many regulators list firms and individuals against whom enforcementor disciplinary actions have been taken. Frequently, the registration or licensing9 See, for example, the U.K. Power Exchange (http://www.UKPX.com), a United Kingdom-based online market fortrading spot and futures contracts in electricity.Copyright © by the Inter-American Development Bank. All rights reserved.For more information visit our website: www.iadb.org/pub