Righting the Ship (Part 3)

What do we mean when we talk about investors’ rights?

Investor rights are non-negotiable. They’re the principles that should undergird financial industry practices and securities laws. What’s legal isn’t just the minimum standard necessary. In many cases it’s totally inadequate to the task of safeguarding investors’ interests.

One example of this is in the area of confidentiality. Americans tend to think that their securities laws are the best out there, but this is an area where our societal mores and expectations lag behind Europe’s. In general, investors should expect that information they share within a fiduciary relationship will remain within that relationship, and won’t be disclosed to others unless they need to know it to serve that relationship. This should apply to everything—not just finances.

But in a tell-all celebrity culture where cell-phone cameras and digital recorders are ubiquitous, privacy seems almost quaint. Some folks even worry now about having their bank statements mailed to them, out of concern about the Postal Service—which doesn’t seem that outlandish, lately.

Collecting information and using it for anything other than an investor’s interest should be seen as deeply immoral. Anything less is unacceptable.

Douglas R. Tengdin, CFA

Chief Investment Officer

By | 2013-06-26T09:46:43+00:00 June 26th, 2013|Global Market Update|1 Comment

About the Author:

Mr. Tengdin is the Chief Investment Officer at Charter Trust Company and author of “The Global Market Update”. The audio version of each post can be heard on radio stations throughout New England every weekday. Mr. Tengdin graduated from Dartmouth College, Magna Cum Laude. He received his Master of Arts from Trinity Divinity School, Magna Cum Laude and received his Chartered Financial Analyst (CFA) designation in 1992. Mr. Tengdin has been managing investment portfolios for over 30 years, working for Bank of Boston, State Street Global Advisors, Citibank – Tunisia, and Banknorth Group. Throughout his career, Mr. Tengdin has emphasized helping clients manage their financial risks in difficult environments where they can profit from investing in diverse assets in diverse settings. –
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One Comment

  1. Dave Stone June 26, 2013 at 11:32 am - Reply

    Great series. Thank you for raising a standard for the advisor & investor culture.

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