Investors Back More Broker Regulations: FINRA Survey

Nearly three-quarters of investors surveyed (74%) said they would support additional regulatory protections to safeguard them from misconduct by brokers or brokerage firms.

Support for more regulations was strong across age groups and investment levels. Only one in five of those surveyed (22%) opposed additional protections if it meant a minimal increase in the costs that brokerage firms passed on to them. By comparison, 56% of those surveyed said they would support additional protections even if it meant a minimal increase in their costs.

Other highlights of the survey include:

• 88% of investors believe it’s moderately or very important for regulators to detect when unsuitable securities are being sold to investors;
• 90% believe it’s moderately or very important for regulators to detect when brokers are making trades that benefit themselves and not the investor; and
• 89% believe it’s moderately or very important for regulators to detect when firms are taking risks that potentially harm their investors and the financial system.

— Check out Are Brokers Greedy Scumbags? by Jon Henschen on ThinkAdvisor.