When you deal with financial professionals, conflicts of interest come up from time to time. The anti-reciprocal rule exists to prevent one of these conflicts from hurting the client.
For instance, you go into a financial advisor to figure out where to re-invest the $10,000 in Bowie Bonds you found at the bottom of your dad's closet. The advisor immediately suggests a couple of "super-hot" mutual funds that "are absolutely fool-proof guaranteed money makers."
You don't know it, but the mutual fund company has given the advisor a kickback to make this recommendation. In fact, there are hundreds of other mutual funds with the same risk profiles and potential upside, all of them with lower costs than the one that was just recommended. But the advisor doesn't mention these other options because none of those mutual funds have sent a check.That situation is why the anti-reciprocal rule is in place.
The regulation, enacted by the Financial Industry Regulatory Authority, or FINRA, prevents managers of mutual funds and brokers from unduly pushing clients to use each other's products. The rule prevents (or at least theoretically prevents) backroom agreements that hurt investors.
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Finance: What is Hiding Written Complain...2 Views
Finance a la shmoop what is hiding written complaints? all right remember
when you were a kid and your teacher sent home a note to your parents and not [Teacher gives boy a note]
a good one you knew you were in big-time trouble so you know why not just hide
the note what your parents don't see can't hurt you right? while hiding
written complaints on Wall Street is kind of like that if an investment rep
receives a written complaint from a client they are legally obligated to
pass it along to their employer and their boss who has to add it to the reps
[Submarine appears] U4 which is not a military submarine but a form that the rep has to
use when registering with the stay you know for their license hiding written
complaints is illegal and can get the rep in deep you know what and like in
the real world it gets a lot worse than being grounded and you know having your [Person picks up Xbox console]
xbox taken away for a week yeah good luck with that
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