We would also like to see the MFDA ( and IIROC) issue timely ALERTS informing investors of specific issues and hazards prevalent at the time. This could include warnings about deceptive advertising ( a great example can be found at http://www.fca.org.uk/consumers/protect-yourself/misleading-adverts ), Betting the Ranch: Risking Your Home to Buy Securities , The signing of blank forms, explaining Return of Capital mutual funds, Alternative Funds Are Not Your Typical Mutual Funds , The risks and dangers of making financial side deals with your salesperson , Using the MFDA Whistle blower program, How to effectively use Fee disclosure and Performance reporting , Watch out for Misleading Titles and Designations , How to read the Fund Prospectus etc. ALERTS should also inform investors of ongoing Consultations and new or pending regulations/ rules of interest to retail investors. Investors would subscribe and have the ALERT sent directly to their email inbox. This kind of real time investor protection is vitally needed in today's fast paced investment world.
Finally, a comprehensive Glossary of all the commonly found terms in the mutual fund industry would be extremely useful. A good example would be the one provided by Morningstar Canada. A simple link would do the job.
All documents , ALERTS and Warnings should be written in plain language and available in both English and French.
A similar set of ideas apply to IIROC but these would include additional topics uniquely relevant to the brokerage industry. Similarly, Securities Commissions could fill in the gaps for the Exempt market , in particular, Equity crowdfunding. By working collabartively with SRO's a robust Street proofing educational regime can be esttablished at reduced cost.
- IOSCO REPORT ON INVESTOR EDUCATION INITIATIVES RELATING TO INVESTMENT SERVICES http://www.lautorite.qc.ca/files//pdf/education-financiere/IOSCOPD404.pdf
- Improve consumer protection by SROs: C.D. Howe Institute research report
- Improving financial literacy through behavioural economics http://www.oecd.org/daf/fin/financial-education/TrustFund2013_OECDImproving_Fin_Ed_effectiveness_through_Behavioural_Economics.pdf
- Marketing of mutual funds (2005)
- How to know when your advisor is
behaving badly - The Globe and Mail