By Tom Bradley
A recent Angus Reid poll confirms what we have believed for a long time - many investors don’t know what they’re paying for their investment services (Steadyhand clients notwithstanding). The December 2010 poll revealed that 45% of respondents were unsure about what fees they were paying on their mutual funds. 28% weren’t able to suggest what a fair fee might be.
In light of these stats, it’s remarkable that the report from the Task Force on Financial Literacy failed to take any concrete steps towards encouraging, coercing or regulating the wealth management industry to report fees and investment returns in a clear and transparent way. Because of its importance, our submission to the Task Force focused strictly on this element of enhancing literacy.
No matter how knowledgeable clients are, if they don’t know how they’re doing and what they’re paying, they won’t be in a position to make effective decisions.