Letters

Re: the story in the Aug. 11 issue “SEC study: Prospectuses go largely unread,” I have some news for the Securities and Exchange Commission and the Financial Industry Regulatory Authority Inc.

I have close to 300 clients, most over 65, and I can count on one hand the number who have read their prospectuses on the mutual funds, variable annuities or other securities we have implemented with them.

What these regulators fail to understand is that with the exception of the do-it-yourselfers, the vast majority of people would prefer that someone else sort through the volumes of information and, hopefully, guide them to products that would be in their best interests.

If you think that it is going to change in the years ahead, you are sadly mistaken.

Both Finra of New York and Washington and the SEC are responsible for this. The volume of regulatory and disclosure requirements along with all the other information that the investment companies are forced to report to shareholders has overwhelmed most people.

Consequently, millions of Americans have come to rely upon the thousands of financial advisers, most of whom serve their clients with integrity and diligence. While some advisers aren’t the brightest bulbs on the planet, the vast majority are doing the best they can to serve their clients.

Financial advisers are constantly being asked questions about irrelevant prospectus updates and other communication that is meaningless to the client, yet the SEC requires that it be sent to them.

The whole idea of a “plain-English” summary prospectus is ludicrous.

The brochures provided by most investment companies and variable annuity companies could easily suffice.

If there is specific information that the SEC feels should be in-cluded, then lay out the “specimen,” as the Internal Revenue Service has done with pension plans and other documents.

Stop creating more work and more disclosure.

It has gotten to the point of stupidity.

Stephen N. Mathieu

President

Legacy Financial Solutions Inc.

Manchester, N.H.

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