The Financial Industry Regulatory Authority is asking advisors and other financial industry stakeholders to help devise a program to educate investors—especially new ones—on how to invest and grow their money.
Total cost of the multi-phased campaign is $30 million. It was prompted in part by the number of new investors using online apps and tools to set up, manage and monitor accounts, Finra said. The effort is being co-sponsored by the Finra Investor Education Foundation.
Identifying the best methods of reaching investors will be phase one. During phase two, Finra and the Finra Foundation will launch a program aimed at educating novice retail investors who are leveraging advancements in technology to enter U.S. securities markets, Finra said.
“It is imperative that we effectively reach all investors, and especially the newest generation of investors, who are more comfortable trading on smartphones and more likely to seek input on investment decisions from friends, family and online sources,” Gerri Walsh, president of the Finra Foundation, said in a statement. “We know that engaging people in educational experiences, whether face-to-face or mediated by technology, can be challenging. That is why we welcome feedback from a diverse array of stakeholders on how best to reach those who opt not to work with registered financial professionals.”
Finra is reaching out to advisory firms, investors, investor advocates, academics and others to determine the best ways to teach new, self-directed investors about investing. Comments are due by Aug. 30 and can be made in the following ways:
• Online using Finra’s comment form.
• By emailing comments to [email protected].
• By mailing comments in hard copy to Jennifer Piorko Mitchell, Office of the Corporate Secretary, Finra, 1735 K Street, NW Washington, D.C., 20006-1506
The comments will be made available to the public.