The NASD Investor Education Foundation is looking for new research on making financial product information more meaningful and more accessible to investors.

The Washington, D.C.-based organization called upon non-profit groups, colleges and universities to submit grant proposals for research projects that examine the type of information, level of detail and method of distribution that would most benefit investors. Grant proposals must be submitted by Aug. 26. The Foundation anticipates awarding multiple grants of US$100,000 or more. Grant recipients will be announced in the first quarter of 2006.

“This NASD Investor Education Foundation grant program will initiate important research that will provide the industry with new and improved ways of explaining financial product information clearly, accurately and effectively,” said Robert Glauber, chairman & CEO of NASD, who also serves as chairman of the NASD Investor Education Foundation. “The Foundation is searching for competitive proposals that will significantly improve the current disclosure regime, because we believe information is a crucial tool for protecting investors.”

Reports must offer conclusions and recommendations for making disclosure more effective for the benefit and protection of investors.

Of particular interest to the Foundation is research that address one or more of the following questions:

  • What type of information and degree of detail do investors consider essential to make informed investment decisions?
  • When is disclosure most effectively delivered?
  • What modes of delivery are most effective at reaching individual investors?
  • What are the best ways to enhance investor retention of material information?
  • What trends exist in the type of material information being disclosed, and are these trends constructive?
  • How can disclosure to investors be improved in such areas as equities, bonds and margin?
  • How does the reliance on, and need for, material information vary according to the distribution channel (for example, direct-sold versus broker-sold)?
  • Would more standardization of financial product disclosure help investors better understand the similarities and differences among financial products?
  • Does the amount of information disclosed dilute the value of the most material information? If so, what is the right level of disclosure?



The NASD Investor Education Foundation, established in 2003, supports educational programs and research with the goal of providing investors with high-quality, easily accessible information and tools to better understand investing and the markets. The Foundation recently awarded more than $1 million in total to 11 organizations for new educational programs and research projects targeting the underserved segments of the population.