When advisors churn, clients get burned

McCarty, Steven
June 2013
Senior Market Advisor;Jun2013, Vol. 14 Issue 6, p60
Trade Publication
The article discusses the negative implications of churning for financial advisors. It states that while churning, or the act of selling consumers a replacement product to obtain an additional commission, is simple, it is not a right thing to do. It mentions that churning is illegal, unethical, and ruins an advisor's reputation. The author suggests that unless there is a tangible benefit to the client, advisors should never replace a product.


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