Main Tenets of the Investor’s Bill of Rights
1. Financial institutions shall provide comprehensive investor education programming and investment coaching at no cost to the consumer.
2. Individual investors shall become qualified by passing a Basic Knowledge exam – an investor’s driver’s license – to qualify as an “accredited” investor by demonstrating an understanding of the risks and rules of investing.
3. Financial institutions shall provide financial literacy and investment fundamentals resources for all individual account holders by accredited third-party investment education coaching/seminars through its communications channels. Provisions include a “pause” while an individual is in transaction mode—by embedding a cautionary checklist before consummating a trade developed and manned by a third-party and paid for by the platform being used.
4. Financial institutions shall provide enhanced transparency by requiring all parties involved in the process of trading in any capacity to disclose any investment or interests.
5. True costs of transactions shall be disclosed, ending the practice of payments for order flows thereby ensuring equal access to markets for individuals as well as institutions.
6. Financial institutions shall develop a reward system for consumers who increase their financial literacy and investment fundamentals knowledge base, including discounted costs and other monetary incentives.
7. Investment participants shall clearly and completely disclose both short- and long-term holdings and/or advocacy positions taken by professional investors of third-party capital managers and their employees.
8. All management meetings with large shareholders shall be publicly disclosed in a timely manner.
9. Public reporting of customer utilization of financial literacy and investor education shall be highlighted on company websites, part of their quarterly reporting, as well as in federal and regulatory filings.
10. Investor education shall be a core element in a financial institution’s business model in order to be included in the market’s evaluation of a company.