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"Perhaps because of negligence, or the desire for high commissions, sometimes brokers don't do what is best or even suitable for their clients," Professor Talbot said.
In a report closely watched by Wall Street, the commission's staff said retail investors "generally are not aware" that stockbrokers and their firms are subject to a lesser legal standard, one that requires brokers to make sure the products that they sell are suitable for their clients.
The salespeople who push these things should have moved on to products more suitable for their clients, like plain old mutual funds.
They are only required to make sure investments are suitable for their clients.
Similar(56)
At present, there are three main types of adviser: tied advisers who only recommend products from one company, such as a bank; multi-tied advisers who recommend products from a panel of providers, and independent financial advisers (IFAs) who have access to the whole of the market and have to find the most suitable product for their clients' needs.
For these reasons, some team members told that recovery was not a suitable concept for their client group.
Future OTC hearing aids then may be more suitable for their major client group—elderly people with presbycusis.
Neither attribute seems particularly beneficial for their clients.
Most Wall Street firms have such desks for their clients.
For their clients it is probably a relief.
She assists financial advisers with planning for their clients.
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