IFIC announces behavioural-economics research initiative with BEworks
Multi-faceted project seeks to enhance investment product disclosure
August 16, 2018 (Toronto) – The Investment Funds Institute of Canada (IFIC) today announced that it has retained behavioural economics consulting firm BEworks to undertake research that will help improve the disclosure practices of investment dealers, advisors and investment fund managers.
“Effective disclosure plays a critical role in providing investors with the awareness and understanding they need to confidently make investment decisions that are aligned with their investment goals,” said Paul C. Bourque, President and CEO, IFIC. “IFIC is pleased to partner with BEworks to examine investment cost and performance statements and to help the industry develop and test new approaches that leverage behavioural insights to improve how information is shared with investors.”
The investment funds industry is delivering greater transparency to investors with annual Client Relationship Model, Phase 2 (CRM2) statements. This research project comprises three elements that are aimed at providing the investment funds industry with the theoretical foundation and practical tools to further improve disclosure:
- reviewing academic and industry research to identify the principles of effective disclosure and best practices in how financial information is prepared, formatted and shared with retail investors;
- assessing the effectiveness of current fee and performance statements against the principles and best practices identified; and
- developing model reports and experimentally testing them against current statements.
“With our deep expertise in the financial services and investment sector and our ability to harness decades of scientific research, BEworks is uniquely positioned to tackle this challenge with IFIC,” said Kelly Peters, CEO & Co-Founder, BEworks. “We commend IFIC for taking a rigorous approach to this critical issue and embracing both scientific thinking and experimentation to improve disclosure practices to encourage better financial decisions among Canadian investors.”
The project is expected to be completed in early 2019. BEworks will be speaking to this research as part of a panel on effective disclosure at IFIC’s Annual Leadership Conference on September 27, 2018.
The Investment Funds Institute of Canada is the voice of Canada’s investment funds industry. IFIC brings together 150 organizations, including fund managers, distributors and industry service organizations, to foster a strong, stable investment sector where investors can realize their financial goals. By connecting Canada’s savers to Canada’s economy, our industry contributes significantly to Canadian economic growth and job creation.
Founded in 2010, BEworks is an unconventional management consulting firm that believes scientific thinking has the potential to transform the economy and society. Our team of scientists in cognitive and social psychology, neuroscience, and marketing work to answer our client’s most complex business questions, execute disruptive growth strategies, and accelerate innovation. Part of the kyu collective of companies since January 2017, the firm’s client list includes Fortune 1000 companies, non-profit organizations and government agencies. BEworks was co-founded by Dan Ariely, renowned behavioural scientist, Kelly Peters, the firm’s CEO and BE pioneer, and top marketing scholar Nina Mažar. For more information, please visit www.BEworks.com, @BEworksInc or https://www.linkedin.com/company/beworks/.
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