Relation between financial advisory designations and FINRA misconduct FSR201714

Authors

  • Jeffrey Camarda Unknown

DOI:

https://doi.org/10.61190/fsr.v26i3.3323

Keywords:

Advisor, Fiduciary, Designation, Best interest, Misconduct

Abstract

Registered representatives have no general fiduciary duty. CFP, ChFC, and CFA designees have higher ethical duties and education requirements. Registrants’ criminal, regulatory, complaint, and other misconduct history is public. This study examines misconduct disclosures of undesignated versus designated Florida securities salespeople, and finds adverse disclosure materially decreases for designees; it incidentally finds misconduct increases with maleness, dual investment advisor/registered representative status, and life insurance sales licensure. This appears to be the first such study of adverse disclosure association with financial designations, adding to the emerging misconduct and advisors’ ethics literature. These findings offer important policy and consumer choice insight.

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Published

2017-09-30

How to Cite

Camarda, J. (2017). Relation between financial advisory designations and FINRA misconduct FSR201714. Financial Services Review, 26(3), 271–290. https://doi.org/10.61190/fsr.v26i3.3323

Issue

Vol. 26 No. 3 (2017): Fall 2017

Section

New Original Submission

License

Copyright (c) 2014 Academy of Financial Services

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