Disclosures are a necessary, albeit tedious, part of any investor/advisor relationship. In my panel at FSI OneVoice 2022, we discussed how to make the disclosure-writing process a bit less painful and also highlighted trends to look out for in the future.
Tips for Writing Disclosures
While writing disclosures is certainly laborious, Form CRS and Reg BI changes in the last few years have demonstrated that regulators are slowly but surely moving toward more digitally native disclosures. Here are 5 tips for your team on how to write disclosures as effectively as possible:
- Avoid legalese. Be direct and don’t use financial jargon investors won’t understand.
- Write disclosures in a collaborative way. Effective disclosures can’t be born in a silo, and different perspectives help them be as strong as possible. The more people involved, the better (to a point, of course).
- Know your customer and what they want to see. Prioritize their needs to ensure that what needs to get read has the best chance of actually getting read.
- Avoid long paragraphs and adopt more charts and bullet points so disclosures are easier to digest.
- Deliver disclosures in a timely manner, but continue to educate your clients on them after initial delivery. Keep the conversation going by reiterating different parts of the disclosure to investors over time.
Trends for the Future
Hyperlinking, using QR codes, and going paperless are becoming more popular in disclosures. Swatika Rajaram, a General Manager at Broadridge and fellow OneVoice panelist, said “85% of the documentation Broadridge processes were paperless last year — a huge change from even 2 or 3 years prior.”
Additionally, disclosure teams should be on the lookout for how to use video in the disclosure process. Broadridge is currently in talks with regulators to introduce videos (and video templates for firms) to help explain Form CRS and other disclosures to clients in simple ways so they better understand what they’re looking at.
Ryan George is the Chief Marketing Officer at Docupace. He is responsible for the company’s brand awareness, early-stage sales pipeline, content strategies, customer and industry insights, internal and external communications, design, and events. George actively engages in leadership roles in both the financial services and marketing communications communities. He a member of the Forbes Communications Council, an invitation-only, fee-based organization of senior-level communications and public relations executives, the CMO Council and the CMO Club.
