August 16, 2019 09:30
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Theinvestment funds Institute of Canada (IFIC) continues with the second phase of its research on the disclosure of financial information, exploring the possibility to improve the understanding of investors with respect to information on costs and performance using online, interactive tools.
This second step comes within the framework of its research on the effectiveness of the financial disclosure that are directed by Jeremy Burke of theUniversity of Southern California , and Oded Nov of theNew York University. The team has conducted similar research for the account of the Financial Industry Regulatory Authority in the United States.
Relying on the first study
“The IFIC found that it was important to build on the findings of the first phase of our study on behavioural economics and explore in more detail other methods to improve the understanding of investors, argues Paul Bourque, president and ceo, IFIC. We hope that the results of this study may be used by companies to evaluate their relationships and their practices of communication of the information. “
The first phase of research published in march has identified barriers to behavioural understanding of privacy statements of the second phase of the client relationship Model-adviser (MRCC2) and included specific tactical resolve. He noted that there is a universal desire of disclosure of performance fees to help individual investors understand their statements and make informed financial decisions.
The researchers of the new study will lead to a controlled trial random with 1,000 canadian investors to assess the relative effectiveness of the disclosure an interactive online compared to the current declarations dictated by the MRCC2. Online statements are being developed in consultation with industry stakeholders.