Statement of Investor Rights

Understandably the financial services profession is regarded with low trust as compared to other industries and professionals.  Conflicts of interest permeate many investment recommendations, and the true costs of investing are rarely clearly disclosed to investors.  The CFA Institute developed a “Statement of Investment Rights” to inform investors about what they should expect from their financial services and products providers.  These investor rights completely embrace a fiduciary responsibility to investors by their advisers and require, among other things, complete transparency about costs and conflicts.  For a complete list of these rights, click here:

What Investors Want

The CFA Institute recently commissioned a global study of “what investors want.”  The survey included 502 institutional investors with $10 million or more of investable assets and 3,312 retail investors who were at least 25 years of age and had $100,000 of investable assets.  While the survey continued to find a low level of trust in the financial services area, even more interesting is what investors found to be most important.  For retail investors, the most important attribute when working with an investment firm is “fully discloses fees and other costs.”  Third most important is “clearly explains all fees and costs before they are charged.”  The survey also indicates that, except for China and India, investors prefer a human touch with respect to their investment strategy.  For complete survey results and related information, please click here: