With the financial services industry eliminating trading commissions, do you know that these "free" platforms are still able to profit from your trading activity? Find out what is the hidden transaction fee!
On November 10, 2021, the Securities and Exchange Commission (SEC) released a Risk Alert detailing deficiencies found in advisors’ fee calculations and fee-related compliance and disclosure issues. Regulators found fee-related deficiencies in most of the 130-plus exams conducted under its Advisory Fees Initiative. Errors included overbilling, double-billing and failing to properly calculate tiered fees. Examiners also found deficiencies related to incomplete or misleading Form ADV Part 2 brochures.
On July 5, 2019, the Securities and Exchange Commission (SEC) adopted a new rule to protect investors. Even so, the financial industry practices are still based on the so-called “suitability” standard. That means any firm can still grossly over-price their products or services with numerous investment fees and hidden cost on the grounds of what they deem as “suitable” with a new label called “Best Interest”.
- Charlie Yang on Social Education: The Key for Investor Success