As the debate around fees continues, in Canada and the world, disclosure will become only one part of the answer rather than the whole solution, according to Susan Wolburgh Jenah, president and CEO of the Investment Industry Regulatory Organization of Canada.
"In the area of investor education," said Wolburgh Jenah speaking as part of a panel at the 2013 IFIE-IOSCO Global Investor Education in Toronto on Thursday, "we can't just assume that disclosure is the default position. It's simply not — on its own — an effective enough tool to people."
Instead, industry members and regulators must look for ways to reach out to investors through media that make sense to them. For example, Wolburgh Jenah pointed to social media and the Internet as the best ways to communicate with younger people.
As well, regulators, both in Canada and globally, are starting to "push the envelope," said Wolburgh Jenah, by saying that in some instances disclosure is not enough when recommending certain products or strategies to clients and other measures may be required.
Furthermore, Wolburgh Jenah said that while little has been decided on in this area, having a conversation about disclosure at all is a big step. "The fact that there is an open, constructive debate going on around these issues is a real sea change," she said.