Almost 80 percent of the survey respondents said information about the fees and expenses related to an investment product were very or extremely important to their decision to purchase it. More than 97 percent of respondents favor a requirement that financial professionals disclose any fees they're earning on products they sell.
"Many respondents also suggested that information about fees and expenses and how financial professionals are compensated should be summarized in a one-page document," said Roger H. Ganser, BetterInvesting's chairman, and Kamie Zaracki, the association's CEO, in comments prepared by the Individual Investor Advocacy Committee of the BetterInvesting board of directors. "As one respondent noted, 'Investors who do not clearly understand the fees they are paying are ... more likely to make poor choices. I believe that fees should be summarized in no more than one page.'"
Over 91 percent of the survey respondents said they believe information about conflicts of interest is very or extremely important when choosing a financial professional, while 87 percent thought this information is very or extremely important in decisions about investment products. Many respondents want this information summarized in a one-page document, BetterInvesting's IIAC said.
The SEC had solicited the comments in connection with a study that's mandated by Section 917 of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010. To read the complete document, go to:
BetterInvesting is a national nonprofit organization that has been empowering individual investors since 1951. Founded in Detroit, the association (formerly known as National Association of Investors Corporation) was borne out of the conviction that anyone can become a successful long-term investor by following commonsense investing practices. BetterInvesting has helped more than 5 million people become better, more informed investors by providing webinars, in-person events, easy-to-use online tools for analyzing stocks and mutual funds, a monthly magazine and a community of volunteers and like-minded investors. For more information about BetterInvesting, visit its website at www.betterinvesting.org or call toll free (877) 275-6242. For additional BetterInvesting data and news releases, visit the Media Center at www.betterinvesting.org/mediacenter.
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