Most Popular
1. It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- Gary_Tanashian
2.Stock Market Presidential Election Cycle Seasonal Trend Analysis - Nadeem_Walayat
3. Bitcoin S&P Pattern - Nadeem_Walayat
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
4.U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - Raymond_Matison
5. How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - Nadeem_Walayat
7.Bitcoin Gravy Train Trend Forecast 2024 - - Nadeem_Walayat
8.The Bond Trade and Interest Rates - Nadeem_Walayat
9.It’s Easy to Scream Stocks Bubble! - Stephen_McBride
10.Fed’s Next Intertest Rate Move might not align with popular consensus - Richard_Mills
Last 7 days
Stock Market Brief in Count Down to US Election Result 2024 - 3rd Nov 24
Gold Stocks’ Winter Rally 2024 - 3rd Nov 24
Why Countdown to U.S. Recession is Underway - 3rd Nov 24
Stock Market Trend Forecast to Jan 2025 - 2nd Nov 24
President Donald PUMP Forecast to Win US Presidential Election 2024 - 1st Nov 24
At These Levels, Buying Silver Is Like Getting It At $5 In 2003 - 28th Oct 24
Nvidia Numero Uno Selling Shovels in the AI Gold Rush - 28th Oct 24
The Future of Online Casinos - 28th Oct 24
Panic in the Air As Stock Market Correction Delivers Deep Opps in AI Tech Stocks - 27th Oct 24
Stocks, Bitcoin, Crypto's Counting Down to President Donald Pump! - 27th Oct 24
UK Budget 2024 - What to do Before 30th Oct - Pensions and ISA's - 27th Oct 24
7 Days of Crypto Opportunities Starts NOW - 27th Oct 24
The Power Law in Venture Capital: How Visionary Investors Like Yuri Milner Have Shaped the Future - 27th Oct 24
This Points To Significantly Higher Silver Prices - 27th Oct 24
US House Prices Trend Forecast 2024 to 2026 - 11th Oct 24
US Housing Market Analysis - Immigration Drives House Prices Higher - 30th Sep 24
Stock Market October Correction - 30th Sep 24
The Folly of Tariffs and Trade Wars - 30th Sep 24
Gold: 5 principles to help you stay ahead of price turns - 30th Sep 24
The Everything Rally will Spark multi year Bull Market - 30th Sep 24
US FIXED MORTGAGES LIMITING SUPPLY - 23rd Sep 24
US Housing Market Free Equity - 23rd Sep 24
US Rate Cut FOMO In Stock Market Correction Window - 22nd Sep 24
US State Demographics - 22nd Sep 24
Gold and Silver Shine as the Fed Cuts Rates: What’s Next? - 22nd Sep 24
Stock Market Sentiment Speaks:Nothing Can Topple This Market - 22nd Sep 24
US Population Growth Rate - 17th Sep 24
Are Stocks Overheating? - 17th Sep 24
Sentiment Speaks: Silver Is At A Major Turning Point - 17th Sep 24
If The Stock Market Turn Quickly, How Bad Can Things Get? - 17th Sep 24
IMMIGRATION DRIVES HOUSE PRICES HIGHER - 12th Sep 24
Global Debt Bubble - 12th Sep 24
Gold’s Outlook CPI Data - 12th Sep 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Global Investors' Bill Of Rights May Prevent Economic Déjà Vu

Politics / Market Regulation Feb 27, 2009 - 02:10 PM GMT

By: Steve_Selengut

Politics Best Financial Markets Analysis ArticleThe 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 Summary:


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.

Investment companies will create no multi-level derivatives, and no product may operate in a manner that artificially impacts the valuation of the securities it tracks. Full layman's language disclosure is required for all risk-increasing activities.

Section Two: Regulation and Education. Investors have a right to expect regulators to protect their interests. Specific risk assessment for all individual securities and derivatives is essential for informed decision making.

Industry regulators will: Provide ground floor education to all investors; Develop standardized risk classifications and assessment tools; Regulate/control Internet investment advice; Prevent the development of multi-level derivatives; Eliminate conflicts of interest between financial companies and rating agencies.

The "hierarchy-of-risk" tool compares the risk vs. reward characteristics of all investment securities, and imposes eligibility controls on speculations.

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. The "up-tick" rule would be permanently reinstated. Margin borrowing would be restricted to non-fiduciary portfolios.

Most commodity and currency speculations would be restricted to professionals.

Section Four: Controls of Hedge Funds. Investors have a right to know that the same rules apply to all market participants. Hedge funds will be subject to the same disclosure, fiduciary, and ethics rules as other regulated entities.

All hedge fund activities, conflicts of interest, speculative transactions, manipulative strategies, reporting, and collusion will be monitored.

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.

Statements must provide cost-based allocation numbers for: Equity, Income, and Other classifications. Sub-category distinctions (tax status, security type, risk tier) would be required. A margin warning-label, and payback options would be mandatory.

Section Six: Retirement Account Investments. Cost based allocation and diversification rules, and income generation minimums, would be mandated to prevent speculation in self-directed retirement program. No retirement portfolio, publicly held corporation, government body, or other fiduciary entity may own Tier Four speculations.

Retirement plan programs that comply with IBOR, and include an SSRIA substitution option, are 100% non-taxable. All persons under 45 may opt out of government-sponsored plans in favor of SSRIAs; any person can fund an SSRIA.

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.

Corporate executive compensation must never be tied to stock price, and compensation above a reasonable cap must be shared equally with all employees and other shareholders--- 50% of performance bonuses should be distributed.

All golden parachutes, "non-qualified" retirement plans, stock option and deferred compensation programs are banned, and at least 25% of all corporate profits must be distributed to shareholders.

Section Eight: Corporate Financial Statements. Investors have a right to clear and accurate financial statements. All public traded companies must provide independently audited financials in non-footnoted, simplified form. Auditors rotate between companies annually, and produce safety ratings linked to fundamentals.

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.

All inheritance taxes are illegal, returnable retroactive 20 years, and the maximum tax on non-retirement plan investment income is a flat 10% used to fund all independent regulatory bodies globally.

Section Ten: Financial Industry Restructuring. Investors must be protected from the conflicts of interest that result from combining financial institutions. All Bank, Brokerage, Insurance, and Investment Banking crossovers will be unbundled for a less conflicted and manipulated environment.

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. IBOR will provide global investors with better information, introduce rules that will help them benefit from proven asset allocation and diversification techniques, and implement controls on both cold blooded speculators and blood thirsty tax collectors.

Investors would retain the right to be emotional, irrational, fickle, stubborn, confused, fearful, inexperienced, hindsightful, speculative, and greedy.

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

By Steve Selengut
800-245-0494
http://www.sancoservices.com
http://www.investmentmanagemen tbooks.com
Professional Portfolio Management since 1979
Author of: "The Brainwashing of the American Investor: The Book that Wall Street Does Not Want YOU to Read", and "A Millionaire's Secret Investment Strategy"

Disclaimer : Anything presented here is simply the opinion of Steve Selengut and should not be construed as anything else. One of the fascinating things about investing is that there are so many differing approaches, theories, and strategies. We encourage you to do your homework.

Steve Selengut Archive

© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in