FINRA Requests Comments On Educating New Investors – Finance and Banking

FINRA requested comments on effective ways to
reach “younger, novice investors and people who have yet to
participate in investing outside an employer-sponsored retirement
plan.”

FINRA asked that stakeholders focus their comments on the
following areas:

• what “the single most neglected area” is in investor
  education;




• the education methods that have worked best among self-directed
  investors and investors who receive advice from registered
  financial professionals;




• the educational interventions with the highest potential to
  influence investor behavior;




• the metrics used to track the results of educational
  interventions;




• the integration of investor education into other types of
  service delivery;




• how to integrate into investor education (i) lessons from
  qualitative or quantitative studies of target audiences and (ii)
  input from behavioral science professionals; and




• the effectiveness of simulated trading in investor
  education.

Commentary

This is a good step. Regulators should be focusing at least as
much on education as on imposing more prohibitions.

Primary Sources

1. FINRA Special Notice – 6/30/21: FINRA Requests
   Comment on Effective Methods to Educate Newer
   Investors

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