Greetings & Salutations All!
I’m not new to the forums, and I’m sure it wouldn’t take much sleuthing to find out my other username: but for the sake of anonymity, it is somewhat necessary to start fresh before I start these writings, for reasons I will now explain.
I am currently employed by one of the largest financial institutions in the U.S. Specifically, my current role is to supervise Financial Advisors and their sales activity to ensure that they are adhering to the regulations put in place by the SEC & FINRA. Prior to this, I was an assistant for various Financial Advisors (FA’s) that work in the bank brokerage channel (i.e. FA’s that sell investments to retail banking customers) for over a decade (including one of the highest revenue earners, or “producers,” in the state). I entered the industry in 2006 as a phone rep for a discount brokerage firm, fielding calls on their toll free number from clients to place stock, bond, and mutual fund trades. Over this period of time, I’ve had to obtain my Series 7, 66, 9, and 10 licenses, along with life, accident, and health insurance license to serve in these roles, and I’ve become intimately familiar with how these large financial institutions function and serve customers at various levels of wealth.
I disclose all of these things for a few reasons. First, I feel being in the role I am has given me a certain vantage point that potentially few have access to. Sure, there are many who work within this industry; however, I’d argue that most are in some respects blinded by both the financial compensation jobs in this industry offer, as well as the narrative of value provided that is reinforced by the company and management. And so, many have no incentive to be self-critical of the means by which they are obtaining their wealth. The second reason I disclose my background is to aid in understanding the limitations of knowledge: I work in a very specified job function/role. The world of finance is large, and there are many processes and mechanisms within the industry (such as venture capital firms, investment banking, futures, and hedge funds, to name a few) of which I have no knowledge. But, even within the narrow scope of my career experience over the past 14 years, I have had a front row seat to the extent in which large financial institutions have made insane amounts of money in the business of money management, and likely to the detriment of the very customers they are claiming to serve.
Of course, one could not expect these financial institutions not to have rules in place that prohibit the public dissemination of how they operate, hence the desire for anonymity.
So…this is partly an exercise to begin to consolidate my thoughts and knowledge around this industry, to put pen to paper so to speak, of my criticisms of this industry, the shortcoming of regulations and how they have failed to protect investors, and just how flagrantly profligate these institutions are, and continue to be. I will delve into the details in future posts of various topics, such as management fees, wholesalers and their influence on FA’s, etc., but I am also somewhat curious to see if there is an appetite for this kind of knowledge. Would love to hear from folks on whether this is a subject they have any interest in, and whether there are any subjects in relation to this industry I may be able to answer.
Appreciate your time!
