Memo #
25812

SEC Seeks Input for Study Regarding Financial Literacy Among Investors; ICI Requests Member Input by Friday, Feb. 3rd
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[25812]

January 19, 2012

TO: SEC RULES COMMITTEE No. 5-12 RE: SEC SEEKS INPUT FOR STUDY REGARDING FINANCIAL LITERACY AMONG INVESTORS; ICI REQUESTS MEMBER INPUT BY FRIDAY, FEB. 3RD

 

Section 917 of the Dodd-Frank Act (the “Act”) requires the Securities and Exchange Commission to conduct a study regarding financial literacy among investors and submit a report on the study to Congress no later than July 21, 2012.  The Commission has published a request for public comment on the issues it is required by the Act to identify in the study, which are listed below.   *

Comments are due to the Commission 60 days after publication of the Release in the Federal Register, which is expected in the near future.  The Institute plans to file a comment letter with the Commission in response to its request for comments.   If there are comments you would like the Institute to consider including in its comment letter, please provide by close of business on Friday, February 3rd either to Tami Salmon at tamara@ici.org or 202-326-5825 or to Mara Shreck at mshreck@ici.org or 202-326-5923. 

Consistent with the express language of the Act, the issues on which the Commission seeks comment are:

(i) methods to improve the timing, content, and format of disclosures to investors with respect to financial intermediaries, investment products, and investment services;

(ii) the most useful and understandable relevant information that retail investors need to make informed financial decisions before engaging a financial intermediary or purchasing an investment product or service that is typically sold to retail investors, including shares of registered open-end investment companies (“mutual funds”); and

(iii) methods to increase the transparency of expenses and conflicts of interest in transactions involving investment services and products, including shares of mutual funds.

 

Tamara K. Salmon
Senior Associate Counsel

endnotes

 * See Comment Request for Study Regarding Financial Literacy Among Investors, SEC Release No. 34-66164 (January 17, 2012) (the “Release”), which is available at: http://www.sec.gov/rules/other/2012/34-66164.pdf. According to the Release, as part of the study “the Commission’s Office of Investor Education and Advocacy is conducting investor testing using qualitative and quantitative public opinion research methods.”