In my last column I wrote about getting the facts. Not just getting the facts, but digging deep, past preconceived notions, past what the majority may believe as fact, to get to the true facts. And how do you know they are true, facts, can be proven. The truth about facts may be unbelievable and even sometimes painful to swallow, but regardless of the way we feel about them, you cannot deny their existence. My trusty Oxford Dictionary of Current English defines a
fact as a thing known to be true. We could conclude from that definition that facts therefore have their foundation in truth.
Now, let us apply the truth about facts to the topic of financial literacy. I believe that financial literacy should be based upon true facts and not merely agreement by the masses to accept certain information as factual. To me, financial literacy is knowing the truth and applying it with absolute confidence. But how do you get to the truth? And more importantly, where do you start? Once we find a place to start asking questions, who do we believe will give us the truthful answers we seek? Do we believe the government? Has the government ever tried to conceal any facts from the public they are meant to serve? Do we take our definitions of financial literacy from our banks and financial institutions? Is it or it is not in their agenda to “hide” certain facts in order to make profits for the shareholders benefit? Will any of the previously mentioned organizations provide us with truthful, unbiased and easy to understand information? Where then do we go when searching for financial truth, financial literacy, where there is no conflict of
interest? Where do you go for true financial information?
It seems to me that these groups all have an agenda that precludes them from stating the plain and simple truth about the facts we need to know about finances in order to make decisions that would positively affect our ability to achieve financial independence. And yet it appears that these groups have a conflict of interest when it comes to telling us the straight goods. For example, ask yourself if you think that your banker will tell you the truth about money, or do you think he will disclose the facts in such a way that provide you with the options that best serve his corporate need to make a profit? And yet every financial advisor, who are licensed agents of the banks securities business, before a sale is made, must offer their client a prospectus which “includes specific, detailed disclosure about a company, its business and the securities being offered." It must provide “full, true and plain disclosure of all material facts relating to the securities issued or proposed to be distributed” as required by subsection 56(1) of the Securities Act (Ontario). For more information, see "National Instrument 41-101 General Prospectus Requirements" http://www.osc.gov.on.ca/en/14326.htm
To me, this is a feeble attempt, by a government agency, who in my opinion lost control to the banks in the Big Bang of 1986, was put in place to contribute to the illusion that the public is always presented with the plain, full and true facts, without actually being told the truth they need to know.
Next week we start asking the really important questions.
Copyright 2013 Richard M. Kiernicki. All Rights Reserved.
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