|
It's the job of securities regulators to make sure that investors get all the information to which they are entitled, so they can make an informed and intelligent decision. At a minimum, consumers need information about the choices, costs, and the risks of the product alternatives presented to them. Sometimes, regulators are concerned about the clarity of the information that is disclosed to consumers.
- Investors have a right to receive accurate information -- detailing all material facts about an investment, including the major factors likely to affect its performance.
- Investors have the right to request information about the firm or the individuals with whom they are considering doing business --- including whether or not they have been in any trouble with regulatory authorities.
- If a particular rate of return is advertised, investors have the right to know how it is calculated . . . and any assumptions upon which it is based. Investors also have the right to ask what financial interest the seller of the investment has in the sale.
- Since every investment includes some risk, investors have the right to find out what these risks are, prior to making an investment. Some of those risks may be obvious; others may be less obvious --- or investors may not fully understand the explanation. The bottom line for investors should be: unless their understanding of the ways they can lose money is equal to their understanding of the ways they can make money, they should not invest.
- Investors also have the right to know, in advance, what obligations and costs are involved with a given investment. For instance, does the investment involve a requirement that investors must take some specific action by a particular time? Or is there a possibility that at some future time or under certain circumstances investors may be obligated to come up with additional money? What are the commissions, sales charges or "loads" when investors buy and/or sell? And are there any other transaction expenses, maintenance or service charges, profit sharing arrangements, redemption fees or penalties, etc. involved with the transaction?
- Investors also have the right to expect that, if they rely on an Investment Professional for advice, they will, in fact, receive responsible advice. The professional needs to take into consideration the financial situation of the investor... his or her needs and investment objectives ... and whether or not a specific investment opportunity may be suitable for that investor. Every firm and individual that accepts investment funds from the public has the ethical and legal obligation to manage that money responsibly.
- Investors always need to know where their money is, and the current status and value of their account. If there have been profits or losses, investors have the right to know the amount, and how and when they were realized or incurred.
DISCLAIMER
The Secretary of State, Illinois Securities Department or their information providers shall not be liable regardless of the cause or duration, for any errors, inaccuracies, omissions or untimeliness of the information, or for any delay or interruption in the transmission thereof to the user, or for any claims or losses arising therefrom.
|
