Since the Investment Company Act and Investment Advisers Act, the U.S. Securities and Exchange Commission has required organizations engaged primarily in investing and trading stocks to provide full disclosure about theirinvestment objectives, while minimizing conflicts of interest. Since then, disclosure has been a prominent tool in the investor-protection arsenal of regulators around the world. Unfortunately, though, as many regulators have found, clear and proper disclosure doesn’t always produce the desired result of protecting retail investors as they navigate a world of increasingly complex financial products.
In a new white paper, we discuss proposed new disclosure requirements under the U.S. Department of Labor’s (DOL) Fiduciary Rule, and then address the concept of disclosure itself. Finally, we introduce a way to document “evidence of comprehension” by investors that could reduce the risk of litigation for financial services firms while helping them identify training gaps that could expose them to additional risk.
For more than 15 years, Istonish has worked as a third-party verification provider to the telecom industry to satisfy regulatory requirements and has created a new compliance solution for the financial services industry called Aprisi Assure™.