THE INVESTOR HAS THE RIGHT TO:
• ASK QUESTIONS - on the investment in which he wishes to apply his savings, on the transaction and the financial agents involved.
• BE AWARE OF THE OPPORTUNITIES FOR INVESTMENT - once the amount to be invested has been decided, along with the horizons for the application and the investor's risk profile, the financial agent should make clear what opportunities for investment exist; the agent's assessment should take into account the sum of capital the investor has available and the degree of risk he is prepared to face.
• BE INFORMED OF THE RULES WHICH GOVERN THE MARKET IN WHICH HE IS INVESTING - the financial agent should provide all the necessary information on the investment which has been chosen, its operational ability and practices prevailing in the market; the agent should also declare the legal and regulatory guarantees to which the investor can resort if the particular rule(s) is not properly carried out.
• MAKE HIS CHOICE COUNT - in other words, the investor's wishes should be respected. Once the investment to be made has been resolved, the financial agent is not entitled to apply the funds to a different operation from that chosen by the investor.
• ENJOY ACCESS TO INFORMATION - this means to request and receive information from the company or the fund being studied by the investor, so that he can decide where to make the application of funds (by being able to look at accounting records and financial information, company documents, the names of the controlling interests and the directors) through consulting the department of shareholders in the company, the Exchange on which the share will be negotiated and, moreover, the CVM. All these facilities are geared to enabling the investor to make a decision while thoroughly aware of the risks and costs involved.
• BE INFORMED OF THE RETURNS AND RISKS OF THE APPLICATION - once the investment has been chosen, the investor requires to be notified by the financial agent as clearly as possible on the returns yielded by it and the chance (risks) that the hoped for returns will not actually come to fruition. The definition of the investor's risk profile is a crucial factor in directing the application with a surer hand.
• BE AWARE OF THE COSTS ARISING FROM INVESTMENT - no investment is entirely free from related costs. It is the role of the financial agent to clarify the costs attached to the application which the investor will have to pay, just as the investor will need to know the liquid value of the transaction. The investor should refuse to pay any figure which had not been previously revealed or settled.
• READ THE CONTRACT FIRST - in other words, be thoroughly aware of the contract which is associated with the chosen investment. This terms of this contract should be set out in a clear fashion and the financial agent will be expected to comply with the rules it contains.
• RECEIVE DOCUMENTATION TO PROVE THE INVESTMENT - once the type of investment to be made and the sum of funds involved have been resolved, the financial agent is obliged to provide the investor with a document (detailing the characteristics of the investment and the sums involved) to vouch for his application. There is a further obligation to inform the investor of the verifying documents which will have to be forwarded to the institutions with which the investor deals, as a guarantee that his wishes will be respected.
• RECEIVE THE BONDS AND / OR SECURITIES STEMMING FROM THE OPERATION - once the operation has been performed, after liquidation the investor should immediately receive the bonds (or, if they are papers, appropriate proof) and securities associated with the application, sale or redemption.
• BE INFORMED OF RIGHTS ACCRUING FROM THE INVESTMENT MADE - the financial agent should inform the investor of the complementary benefits connected with the investment. For example, in the case of shares, the agent should point out the existence of dividends, bonuses, split and reverse splits. In the case of ordinary shares, it is important to explain such matters as voting rights, etc.
• TO COMPLAIN - TO MAKE RIGHTS COUNT! - if rules in force are not observed, the investor is entitled to take a complaint without any reservations or fear of adverse reaction to the contracted agent, institution, stock exchange, over-the-counter market or to the CVM, the regulatory agency responsible for the inspection of the market in securities.