“Firms to Pay $125 Million to Clients Over Fee-Disclosure Practices,” The Wall Street Journal, March 12, 2019. Clients “steered” to higher-priced mutual funds without disclosure.
Gosh. Investment advisers (including our close friend, Wells Fargo) don’t tell their customers about a cheaper alternative. Had the customers asked, would the advisers have lied? The essence of a lot of business transactions is different levels of information between the buyer and the seller, but aren’t advisers paid to find the best deal for you?
Certainly, Information. But with a touch of Governance (don’t they have the duty to tell you?). And maybe Compliance (that’s why they paid a refund). And Use/non-use (they knew, but failed to tell you).
But why didn’t the advisers get fined?
infogovnuggets 