If you work with a financial adviser, now might be a good time to review your advisory agreements and financial statements. Last year, the Securities and Exchange Commission took a closer look at the business practices of registered investment advisers and broker-dealers and didn’t like what it found.
Financial advisers and broker-dealers under SEC supervision go through periodic examinations to ensure that customer disclosures and business practices are in line with the law. If the SEC notices that a large number of firms are making the same error over and over, it will issue an alert.
