The fact that some retail investors had apparently devoted the bulk of their savings to buying unsecured, high-yielding debt issued by some recently collapsed property companies also suggests that some people have difficulty understanding the financial risks of investment products. The Australian Government, through the Financial Literacy Foundation, has a number of initiatives underway to improve financial education and literacy standards.
ASIC has also been active in educating retail investors about financial products, and a range of privatesector initiatives are underway to help improve financial literacy standards. One way that the financial services industry can help retail investors make better investment decisions is by providing clear and concise information about their financial products.