What does the new Dodd-Frank / SEC “Study Regarding Financial Literacy Among Investors” offer investor relations?

A lot of snarky criticism in the news today regarding Dodd-Frank’s required “Study Regarding Financial Literacy Among Investors.

The SEC spent two years producing the 200 page report. With statements like this > The Commission has expressed no views regarding the analysis, findings, or conclusions…” I can see why the pundits are pig-piling.

The report seems to be focused on financial products and services, almost exclusively focusing on transparency around funds and broker processes. How does this report relate to equity-based investor relations?

From the study:

The study shows that investors prefer to receive investment disclosures before investing, rather than after, as occurs with many investment products purchased today. The study identifies information that investors find useful and relevant in helping them make informed investment decisions.

This includes information about fees, investment objectives, performance, strategy, and risks of an investment product, as well as the professional background, disciplinary history, and conflicts of interest of a financial professional.

Investors also favor investment disclosures presented in a visual format, using bullets, charts, and graphs.”

Kudos to the corporate issuer. This has been investor relations’ Standard Operating Procedure for years. There is an entire industry of products (ours are the best BTW) just for the express purpose of helping issuers with access and transparency.

Lastly, how about a little kudos to us for demonstrating great resistant from any blog snark here – although it never occurred to me to ask investors about “using bullets” in OUR new Shareholder Confidence 365 study. 

Have a great day.



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