Most Americans lack essential knowledge to effectively manage their finances even as their willingness to take on financial risk edged higher than it was three years ago in the immediate aftermath of the financial crisis, the main U.S. brokerage industry regulator reported in a study. The findings were in the 2012 Financial Capability study released this week by the Financial Industry Regulatory Authority's FINRA Foundation arm. They fueled calls by regulators for more education and investor protection. "Higher risk investments can be an important part of an investor’s portfolio, but willingness to take on risk without a clear understanding of the potential consequences can lead to disastrous results," said Mary Jo White, chairman of the Securities and Exchange Commission, at a news conference to unveil the study. FINRA has made a brokers' duty to adequately explain complex investments to customers a major theme of its oversight and exams this year. The survey "underscores
↧