FINRA targets wholesalers' roles in financial products sales

03/22/2012 | InvestmentNews (free registration)

The Financial Industry Regulatory Authority is taking an interest in wholesalers' role in the sales of financial products that are often not fully understood. "In cases we've looked at, sometimes these products are so easy to sell because they promise more return with less risk," J. Bradley Bennett, FINRA's executive vice president of enforcement, said at a recent SIFMA conference. "They're easy to sell, and they take over the [broker-dealer's] platform, and the firm doesn't truly understand them at a base level. You'll see investors holding [these products] in a way that is inconsistent with how the product was designed."

View Full Article in:

InvestmentNews (free registration)

Published in Briefs: