Los Angeles (Sept. 9, 2002) – More than half of financial services professionals believe that government efforts to protect investors following the September 11 attacks and the accounting scandals have had no effect, with droves of people moving money to bank accounts or fixed income investments.

More than 85 percent of the 1,000 Farmers Financial Solutions registered agents said their clients have reallocated investments out of the stock market over the past year. Nearly 62 percent of those polled said the government’s efforts to reassure investors has fallen on deaf ears.

"This data confirms what we’ve believed all along, but adds a chilling, real-world perspective to how defensive investors have truly become," said Farmers president Brian Cohen.

Among the findings:

  • Sixty-seven percent of agents saw some of their customers pull all of their money out of the stock market.
  • While 61 percent said customers started to invest again after the terror attacks, 62 percent said customers again pulled money out following the corporate accounting scandals.

"Despite the quick passage of legislation geared toward preventing future accounting malpractice, 62 percent of our agents indicate government efforts have had no effect on restoring investor confidence," Cohen said.--Electronic Accountant Newswire staff

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