Small-Investor Interests Get New Champion Group Will Scrutinize Brokers, Regulators
Who’s looking to safeguard the interests of small investors? A new group launched in Washington, D.C., last week plans to fill the role.
The National Council of Individual Investors bills itself as the only independent nonprofit group whose main mission is to serve as an advocate for small investors.
In a news conference a week ago, the council’s policy director, Gerri E. Detweiler, declared, “We will stand up for the rights of small investors, as no group has done before.” Here are some of its goals:
To help people understand their opportunities, risks and rights as investors. For example, the council says it will help investors find out how to tell the difference between good and bad brokers, and good and bad investment advice.
To fight for investor rights on Wall Street, in Washington, and in state capitals, so that investors are treated fairly in the marketplace. For example, it will work to make sure that state and federal regulators have enough staff and power to oversee markets and protect investor rights.
To provide members with unbiased information to help them evaluate, analyze and compare investment products and services. For example, it will offer discounts on books, research reports and computer software.
To fight industry-backed efforts that stifle complaints from defrauded investors. It also will work to preserve investors’ legal rights in the courts and in arbitration proceedings.
To discourage high-pressure and misleading sales tactics in the financial services industry, and urge better testing and training of financial professionals.
The council also plans to publish a monthly newsletter, “The Serious Investor,” and give its members a practical guide on how to check out brokers and other financial professionals, Detweiler said.
Detweiler formerly was executive director of Bankcard Holders of America, a national consumer group.
Council advisers include representatives of the Consumer Federation of America, the American Association of Individual Investors, and the National Association of Investors Corp. Membership will cost $49 a year.
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