The SEC recently released a list of common indications that a broker may be selling unapproved investments as a side business.
Human nature transcends national boundaries. At least, that’s what a recent and very disturbing investigative report suggests about financial advisors in our genial neighbor to the north, Canada. While Canada may not have anywhere near the United States’ problems with violent crime or even crime in general, it appears to be equally burdened by financial fraud and broker misconduct.
The CBC or Canadian Broadcasting Corporation is the country’s oldest and most venerable broadcasting network. And its Marketplace division covers the financial markets for the network. Given that about a third of all Canadians use investment advisors to manage their money, CBC’s Marketplace reporters thought it would be interesting to find out just what kind of advice these advisors were dispensing to ordinary folks like us. So they sent journalists posing as customers into five large banks and five popular and investment firms wearing a hidden camera.
Well, guess what…?
The hidden camera revealed that the advice these so-called “advisors” were giving was nothing short of “atrocious.” For more, check out the entire mind-boggling, stomach-turning piece here.
If you think it’s just a Canada thing, think again. As the media and FINRA’s own monthly disciplinary action reports suggest, negligent investment advice, broker misconduct, and outright fraud and theft are closer to the rule than the exception in our great country. And while regulators at the SEC and FINRA are working hard to fight and rectify all forms of misconduct, the best means of prevention still lies with the individual investor: us. Check out the CBC’s helpful tips on how to check out your broker, and then check out our own tips for financial self-defense here.
If you or anyone you know has been the victim of broker misconduct or investment fraud, please contact us immediately for a free consultation at 1-855-462-3330 or via email by clicking here.