A new study conducted by business school professors at University of Minnesota
and University of Chicago shows that roughly 20% of financial advisers
at Oppenheimer & Co. have records of misconduct. Furthermore, around
7% of financial advisers in the entire industry have been disciplined
for some kind of misconduct.
The securities industry requires trust between advisers and clients. As
such, the number of financial advisers who have misconduct on their records
is troubling, especially with a large firm such as Oppenheimer & Co.
The growing amount of misconduct in the industry is alarming, and in 2015,
FINRA responded by permanently barring 25 brokerage firms and roughly
500 individuals from the securities industry for various types of misconduct.
Financial firms are taking steps to deal with their brokers’ misconduct
- roughly half of the brokers cited for misconduct are fired from their
brokerage firms. Unfortunately, around 44% of these individuals are hired
within a year by another firm, usually ones with higher rates of misconduct.
This study is the first of its kind and lists the top 10 advisory firms
with the highest rates of misconduct.
If you have lost money due to investor misconduct, contact our team at
Meyer Wilson. You can meet with our securities fraud lawyers in a
free consultation and learn about your legal options regarding your potential claim.