FINRA requested comments on effective ways to reach "younger, novice investors and people who have yet to participate in investing outside an employer-sponsored retirement plan."
FINRA asked that stakeholders focus their comments on the following areas:
- what "the single most neglected area" is in investor education;
- the education methods that have worked best among self-directed investors and investors who receive advice from registered financial professionals;
- the educational interventions with the highest potential to influence investor behavior;
- the metrics used to track the results of educational interventions;
- the integration of investor education into other types of service delivery;
- how to integrate into investor education (i) lessons from qualitative or quantitative studies of target audiences and (ii) input from behavioral science professionals; and
- the effectiveness of simulated trading in investor education.
Commentary
This is a good step. Regulators should be focusing at least as much on education as on imposing more prohibitions.
Primary Sources
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.