INVESTOR ADVOCATES RESPOND TO POS CONTROVERSEY
From coast-to-coast, advocates of investor education have sharply reacted to the discontent shown by the mutual funds sector over the proposed POS disclosure obligations.
“Investors want to be able to make informed decisions and require information before they buy, like every other product,” says Ken Kivenko, president of Kenmar Associates in Toronto. “These investments are their life savings.”
He says the POS initiative as it stands doesn’t cut the mustard but “if the CAS listen, it could be a real positive for small investors.”
Kivenko says the mutual funds industry treats advisors as their customers instead of investors. He says if this continues it can “ultimately destroy the industry.”
POS is just a small movement to help investors not a looming disaster for manufacturers and sellers of mutual funds, says Mike Macdonald, vice president, consulting, Weigh House Investor Services in Burlington, Ontario. He broadsided the media machinery for “protecting the status quo” while stressing the need for regulators to push forward.
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April 21, 2010
Posted by BEYOND RISK at 4/23/2010