Can FINRA Protect Investors from Financial Advisor Misconduct ?

New Study says 1 in 10 Advisors – History of Severe Financial Advisor Misconduct According Financial IQ a recent study, ’The Market for Financial Advisor Misconduct,’ to be published in the Journal of Political Economy, says that one in ten advisors has severe misconduct records and that may be on the conservative side. The study coauthored by Amit Seru, professor at Stanford Graduate School of Business; Gregor Matvos, professor at the McCombs School of Business at the University of Texas; and Mark Egan, assistant professor at Harvard Business School, shows rogue brokers are operating throughout the United States with the highest concentrations in Madison, N.Y.; Indian River, FL; and Monterey, CA, according to the study. The study uses specific Financial Industry Regulatory Authority (FINRA) misconduct disclosures, as they represent dishonest behavior, according to co-aurthor Seru. The disclosures used included unsuitability,…

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