There is probably no way to know whether conflicts in the brokerage business are more severe or common than they used to be.
But they aren’t hard to find. An adviser might earn undisclosed fees that could taint his objectivity or recommend mutual funds run by his firm over cheaper third-party choices; he could collect upfront commissions on funds right before moving the client’s assets to a fee-based account.
Often, the code of conduct meant to guide brokers’ behavior doesn’t require them to act in their clients’ best interest. The Finra report urges firms to adopt such a proviso. Some firms don’t give brokers specialized training to sell complex products like “structured notes,” debt securities whose returns depend on factors beyond interest payments alone.
However, other firms review such products after launching them to see whether they perform as promised and to learn whether they have been sold to investors—or by brokers—who don’t understand them.
“That’s a strong process,” Ms. Axelrod says, “and one that I would strongly suggest that firms consider adopting.”
Some brokerages, according to the Finra report, refuse to offer higher payouts for selling in-house mutual funds or other investments; that might help prevent brokers from pushing funds that benefit the firm more than the client.
1 comment:
Pity the central bank stockholders or "owners" remain as entrenched in our global economy as "fossil fuel" remains entrenched in our automobiles! Just as we could have had alternative means of "clean transport" in these last 100 years, we also could have had an alternative means of procuring our money supply than by going into debt to the central banks! As they have controlled media, monarchs, and politicians for ages, is it any wonder they also control what is taught at our schools and universities in disinformation campaigns?!?
The elites do not block their eyes and ears as to how to control the populace of the world through fear of job loss and panic! They do not write flowery articles, but go "straight for the jugular" when nations are down! Their "buddies" in business are now buying up land and assets in places like Spain and Greece for pennies on the Euro under this orchestrated depression and austerity!
They also actively listen and plot to "do in" anyone in power who might stop their little game of issuing the world's money supply through debt and interest! Kennedy and Lincoln are just two of the major assassinations accomplished by the elite bankers, as they had wanted to print-debt free money directly from government treasuries.
Time to open our eyes and ears, I believe, to the smoke and mirrors the "owners" of the central banks have been feeding us for centuries, and put the rotten buggers in jail! Two world wars should be enough to tell us that they are intent on leading us to "hell in a hand basket" - do we need a third world war to top off this orchestrated depression?!? I don't think so - when there is enough wealth for all people on earth to enjoy a comfortable living without this incredible hoarding going on by the few!
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