22 February 2012

Bidding war for Financial Advisers - what it means for you

News that major players in the financial services industry are involved in a bidding war for financial advisers should alert investors that they may be left paying the bill for irresponsible behavior by the employers of these advisers. After all, more pay for the lucky advisers who have large amounts of money lavished on them means that they are expected to 'produce' fees and commissions that justify their increased income. This could well tempt some - or the majority - among them to put their customer's money into investments that are selected not because they are particularly suitable but because they result in higher fee income for the adviser. Investors should therefore be wary whenever their financial consultant changes employer and take independent advice before considering shifting any accounts to a new firm.