July 31, 2015
As an investor who who reads the financial news every day I am very aware thatthe information systems that underpin the markets are subject to error. We haveseen flash crashes, falsified computer records a la Bernie Madoff, network failure,and systematic manipulation of computerized data. Given all that, it isreasonable for investors to expect easy access to paper records produced by thefinancial institution that holds their funds. These records allow individualinvestors to maintain a consistent history of their funds, in an established andunderstood format. Without paper records there is no clear way for anindividual investor to prove their holdings in the event of a computer failureor attack on our financial systems.
Giving investors a one-time option to opt-in to paper is notsufficient, since notices of this sort can easily be missed (in fact, somefinancial institutions are likely to purposely make the notification very “missable”)
Protection of individual investors is a key part of yourmandate, so you must side with the public and insist on easily available paper records.
Sincerely,
Karen Hibdon
Bethesda MD