In comments to the Securities and Exchange Commission, the Individual Investor Advocacy Committee of the BetterInvesting Board of Directors said investors believe that information about fees and expenses is very important to their decision-making, and they want this information in an easier-to-read format. The newly formed committee surveyed the BetterInvesting community in preparing its comments, which were published on the SEC website.
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 their comments. “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.’ ”
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 here: http://www.sec.gov/comments/4-645/4645-26.pdf