Given the inherent conflict of interests in the financial adviser industry, since there seems to be a regulatory gap in Asia, the burden falls upon investors to understand the investment management industry. Unsurprisingly, most investors prefer to use simpler assets as store of wealth, such as bank deposits, certificates of deposit, or even real estate.
Tag: misconduct
Investors should be aware of who their regulators are and whether the regulators are well-equipped to be an effective deterrence against potential misconduct by their financial advisers. Investors in areas with a weaker or financially constrained regulator will need to be more active in monitoring their own investment advisers and do not take the fiduciary duty for granted.
The Chicago Notebook 