News Release

IFIC Announces Second Phase of Behavioural Economics Research

Using online and interactive disclosure to enhance fee and performance disclosure

August 14, 2019 (Toronto) – The Investment Funds Institute of Canada (IFIC) has launched the second phase of research on effective financial disclosure. The new research will explore the potential to improve investor comprehension of fee and performance information through online and interactive disclosure tools.

The researchers selected for this project – Jeremy Burke from University of Southern California and Oded Nov from New York University – have conducted similar research for the Financial Industry Regulatory Authority.

“IFIC felt it was important to build on the insights gained from our first phase of behavioral economics research and explore more deeply other methods to improve investor comprehension,” said Paul Bourque, President and CEO, IFIC. “It is our hope that the results can be used by firms to evaluate their own disclosure reports and practices.”

Released in March, the first phase of research undertaken with BEworks identified behavioral barriers to understanding CRM2 disclosure statements and included specific tactics for addressing them. In the new study, researchers will conduct a randomized controlled trial with 1,000 Canadian investors to assess the relative efficacy of online interactive disclosure compared with current state CRM2 statements. The online statements are being developed in consultation with industry stakeholders along with insights from the BEworks research and previous research on online financial disclosure.

To access the BEworks research report, please visit IFIC.ca.

About IFIC

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.

For more information please contact:

Pira Kumarasamy
Senior Manager, Communications and Public Affairs
pkumarasamy@ific.ca
416-309-2317