Alert January 24, 2012

SEC Requests Public Comment to Assist Study on Investor Financial Literacy

In connection with preparing a study regarding financial literacy among investors as mandated by the Dodd-Frank Act, the SEC issued a request for public comment on the following topics specified in the Act:

  • methods to improve the timing, content, and format of disclosures to investors with respect to financial intermediaries, investment products, and investment services;
  • 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
  • methods to increase the transparency of expenses and conflicts of interest in transactions involving investment services and products, including shares of mutual funds.

Comments are due no later than 60 days after the request is published in the Federal Register.