From Disclosure to Comprehension: Mitigating Risk in a Fiduciary World

May 25, 2017 11:43:37 AM

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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™.

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Annette Quintana

Written by Annette Quintana

Annette Quintana is the CEO of Istonish Holding Company, a privately held, Native American- and Latino-owned information technology services company established in 1990. Headquartered in Denver, Colorado, Istonish helps organizations, individuals and communities to be great through innovative technology solutions. Annette’s unique capacity to inspire her team to deliver successful results stems from her enthusiastic commitment to this vision. Under Annette’s leadership, Istonish has grown and evolved to serve government agencies, private companies large and small, and mission-driven not-for-profit organizations throughout the Mountain West.

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