13 October 2010

Don't mess with 'J.R.' - Larry Hagman wins arbitration case

News that actor Larry Hagman has won an arbitration award against the employer of his former financial adviser illustrates the importance of supervising the activities of any adviser. In this case Hagman and his wife were sold an expensive (and possibly unnecessary) investment 'product' and their portfolio was subjected to substantial turnover which implied a high level of fees and commissions. The case also illustrates that is is not enough to rely on the image/reputation of the employing bank or fund manager - sponsorship of sports or cultural events is no substitute for performance. Careful vetting of any new adviser should also be conducted and include the use of references and all other available information.