Full Disclosure
Mutual Funds (07/00) Vol. 6, No. 9 p.84; Simonoff, Evan; Longo, Tracey

An investigation completed by the Securities and Exchange Commission (SEC) uncovered a string of abuses brokers and advisors routinely commit at the expense of their less wealthy customers. Among other things, the report found that some advisors and brokers keep the best stock picks for themselves, wealthy clients, and institutional investors, leaving the rest of their customers out in the cold. The SEC report also found that clients of some planners may be undergirding their planners' businesses without their knowledge. Current law requires that advisors seek the best net price for clients' securities transaction.


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