Many investors are unaware that they can lookup information about their
financial advisor’s regulatory and customer complaint history by
going to FINRA’s BrokerCheck website at
http://brokercheck.finra.org/. A new study by business school professors at the University of Chicago
and University of Minnesota underscores the importance of investors using
BrokerCheck before working with a particular financial advisor.
The study, entitled “The Market For Financial Adviser Misconduct,”
found that 7 percent of financial advisors have been disciplined for misconduct
that ranges from putting clients in unsuitable investments to trading
on client accounts without permission. The study also shows that of the
financial advisors in the industry who have a material misconduct on their
FINRA BrokerCheck, 73% are still employed a year after the event was reported.
This number is alarming, particularly when considering that other studies
have shown that brokers with a history of misconduct are five times more
likely to engage in similar activities in the future.
At Meyer Wilson, we encourage investors to use all the resources available
to them before making any investment decisions. We know the consequences
of broker misconduct and how it can impact investors, and we want investors
to arm themselves with the tools they need to help protect themselves. .
If you invested and lost money because of misconduct by your financial
advisor, contact our securities fraud lawyers today for a
free consultation. We can work with you to help you recover your investment losses.