There is little doubt that despite the importance of
reading the terms included in policy documents, very few people
actually read them. Reading investment documentation and
understanding their potential ramifications has many benefits which
may include avoiding extra fees or charges, making sure that the
terms suit your needs, dealing with repercussions and market
failures, and avoiding complaint redress, amongst others. In fact,
it is important to point out that sending well-written and updated
policy documents to investors/members is not only considered to be
a fiduciary obligation but is material evidence which can disprove
or refute a financial services complaint.
As suggested in the opening statement, people rarely read the
documents sent to them. A classic example would be the terms and
conditions attached to a credit card application, or the terms of a
mobile phone contract. This is even more so with insurance policies
or mutual fund prospectuses. Consumers
