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New retail IFs targeting first-time and Millennial investors

  • February 01 2022
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New retail IFs targeting first-time and Millennial investors

By Maja Garaca Djurdjevic
February 01 2022

The Australasian Investor Relations Association has called for greater transparency of retail shareholder rights when using investment facilitators.

Millennial investors

New retail IFs targeting first-time and Millennial investors

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  • February 01 2022
  • Share

The Australasian Investor Relations Association has called for greater transparency of retail shareholder rights when using investment facilitators.

Millennial investors

A growing number of retail investment facilitators (IFs) are failing to deliver the “Full Share Ownership Experience” (FSOE) to their clients, the AIRA has claimed. 

In a statement issued on Tuesday (1 February), the AIRA called for greater transparency of retail shareholder rights when using IFs, noting that new IFs are withholding crucial information from first-time and Millennial investors.

New retail IFs are targeting first time and millennial investors with low costs and ease of use services but not all provide the flow of information and opportunities to their clients as most investors and listed companies expect, the AIRA said. 

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The association warned that by sidestepping the FSOE, IFs are negatively impacting listed companies, limiting their ability to communicate and affecting long-term relationships.

“There have been instances of criticism towards companies where shareholders believed that they held direct share ownership and were not aware their IF was not providing the FSOE,” said Ian Matheson, AIRA chief executive.

“They assumed that the information, access and opportunities were selectively coming from the companies but in fact it was the IF and [its] structure that stopped the flow.”

As such, AIRA has called for IFs to be upfront and clearly provide investors with a statement confirming what they’re set to receive. 

New retail IFs targeting first-time and Millennial investors
Millennial investors
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About the author

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Maja Garaca Djurdjevic is the editor of nestegg and Smart Property Investment. Email Maja at [email protected]

About the author

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Maja Garaca Djurdjevic

Maja Garaca Djurdjevic is the editor of nestegg and Smart Property Investment. Email Maja at [email protected]

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