“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?

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Filed under Theme Four: Use, Theme One: Information, Theme Three: Compliance, Theme Two: Governance

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