Reliability of investor protection
Investment protection is referring to any form of guarantee or insurance that investments made will not be lost, which may be through fraud or otherwise. For example, according to the New York State Securities Law, the Investment Protection Bureau is a New York State State legal body charged with protecting the public from fraud by monitoring and limiting investment. Most other protection is of this form, monitoring brokers and comparable individuals and legally preventing them from misusing investments. Investment protection treaties are widely used in bilateral agreements between two states to make foreign investment more attractive.
The Investor Protection Act is a component of the broader Dodd-Frank Wall Street Reform and Consumer Protection Act of 2009, designed to expand the powers of the Securities and Exchange Commission (SEC). The act established a whistleblower reward for reporting financial fraud, increased liability for aiding and abetting, and doubled funding to the SEC over five years. Also known as the Investor Protection Act of 2009, it was introduced as part of regulators' attempt to prevent some of the problems that caused the financial crisis from reoccurring in the future.
Investor Protection Act. Investopedia. Retrieved from: https://www.investopedia.com/terms/investor-protection-act.asp