Posted by fi360 Team on July 29, 2013
>>>>“No matter what commercial crisis we examine, there are, almost without exception, three factors that form a perfect storm: greed, weak leadership and fear.”
Those are the words used by law firm Labaton Sucharow LLP to summarize the findings of their second annual financial services industry survey. In his latest Fiduciary Corner column for InvestmentNews, Blaine Aikin takes a look at how investors are completely justified in questioning the trustworthiness of those in financial services.
Among the findings are that roughly a quarter of all advisors surveyed had firsthand knowledge of wrongdoing, feel incentivized to compromise their ethical standards or violate the law, would engage in insider trading if they felt they could get away with it, and feels that their own industry does not put clients’ interests first. Even more alarming was that these numbers were even higher for younger respondents, which doesn’t bode well for the leadership situation improving over time.
The survey is a stark reminder that the culture in financial services will need to fundamentally change before investors should be expected to follow suit and believe advisors are working in their best interests.
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