
Researchers have found that financial advisers who engaged in misconduct mostly get to keep their jobs – or are quickly snapped up by another firm in the industry. And while the report primarily focused on financial advisory firms in the US given its high rates of misconduct, it was noted that the risk of this happening within other countries was just as high.
Some seven per cent of financial advisers have been disciplined for misconduct that ranges from putting clients in unsuitable investments to trading on client accounts without permission. And some well-regarded firms have misconduct records that far exceed the average. For example, nearly 20 per cent of financial advisers at Oppenheimer & Co, with more than 2,000 advisers counted in the study, have misconduct records. “It’s everywhere, as well as in small firms. It is pervasive,” said Amit Seru, a finance professor at the University of Chicago’s Booth School of Business.- FCAs new regime for banks and investment firms unveils who’s to blame for misconduct
- CEOs that used staff as scapegoats to protect themselves and the business
- Whistleblowing is the best preventative measure for fraud
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