Global Investors' Bill Of Rights May Prevent Economic Déjà Vu

By Steve Selengut

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The purpose of IBOR is to protect financial markets and to create self-sufficient investors who produce economic growth instead of government deficits. IBOR standards create transparent financial markets, regulate speculation, and protect retirement portfolios. Here's a sampling:

Section One: Product Transparency. All investors have a right to see precisely what securities are inside any investment product by accessing real time information that includes names and cost-based allocation percentages.

Section Two: Regulation and Education.

Section Three: Protection from Speculators. Investors have a right to protection from risks added to portfolios without their control, knowledge, or permission.
Naked shorting, index fund ownership of large share positions, and all naked option transactions would be prohibited.

Section Four: Controls of Hedge Funds.

Section Five: Brokerage Account Statements. Investors have a right to account statements that: 1) help manage asset allocation targets, 2) report realized gains and losses, 3) track cost basis and net deposits, and 4) emphasize the long-term, cyclical nature of the investment process.

Section Six: Retirement Account Investments.

Section Seven: Executive Compensation. Every shareholder of a publicly traded entity has a right to share in the growth and profits of the business in the same manner as highly paid employees.

Section Eight: Corporate Financial Statements.

Section Nine: Taxation Considerations. Investors have a right to formulate their investment and retirement plans without having to worry about changing tax code requirements. IBOR compliant retirement plans would be exempt from taxation.

Section Ten: Financial Industry Restructuring.

Section Eleven: Global Reform Investor Protection and Education Board. A 15 to 25 member multi-national GRIPE board will be established with representatives of regulatory agencies, investor associations, academia, the media, and just one person each from Banking, Brokerage, Insurance, and Investment Banking.

Section Twelve: Transactional Fear and Greed Controls.

General Note: The above is a summary of the October 2008 SIBORAP report, published by Steve Selengut, in collaboration with Claus Silfverberg, Managing Director, World Federation of Investors Corporations --- for the whole thing, google the title.