Monday, March 7, 2011

Survey Finds ‘Widespread Mis-Selling’ by Brokers

Via DealBook. 
Financial advisers continue to sell risky products to unsuspecting investors — a “widespread” problem for the securities industry, according to a new survey of investment professionals. The survey respondents identified “mis-selling” by brokers as the top ethical problem facing the industry.
“It is hard for people to find high-quality, objective financial advice,” said one respondent to the survey, which is to be released later this month.
Registered investment advisers have a fiduciary duty to put their customers’ interests ahead of their own. Brokers, sometimes called financial advisers, currently face a lower standard that allows them to plow client money into any investment — so long as it is “suitable.”
Click Here to Read: Survey Finds ‘Widespread Mis-Selling’ by Brokers

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