What is full transparency when you buy investment advice, recommendations, and products?
Transparency occurs when investors are provided an easy-to-read document that contains all of the facts they need to make an informed decision when they select advisors and invest their assets.
Wall Street spends millions of lobbyist dollars per year fighting transparency. Corrupt politicians who are more interested in Wall Street money than serving the interests of the American public make sure regulations favor companies and not investors.
What is Wall Street afraid of? In a nutshell, companies are afraid investors would not buy what they are selling if they knew the truth. Transparency would damage revenues and profits of companies and the bonus compensation of the executives who run the companies. Wall Street’s solution is to keep investors in the dark.
So what are they hiding?
How about financial advisors who lack experience, education and certifications? Or, advisors who have numerous investor complaints on their compliance records?
How about financial advisors who use deceptive tactics in verbal sales pitches so investors have no written record of what was said to them.
How about investment products that that have excessive expenses and poor performance?
How about “beat the market” investment products that have never beaten the market?
In January, 2012, Investor Watchdog is going to begin providing free tools that investors can use to obtain the information they need to select and monitor quality advisors who are willing to practice full disclosure. Watchdog tools will also expose advisors who withhold important information from investors.
Watchdog tools have the potential to change the game in favor of investors.