Mr. Speaker, the decline of the stock market over the past several years has caused investors to become more wary of the advice they receive from their investment advisors.
Many are surprised to discover that investment advisors are paid sales commissions by fund companies to sell their products to their clients and later keep them from selling those investments. These commissions and higher ones paid to sell private placements represent a conflict of interest that investors need to be aware of.
It is time for national standards to protect investors from commission-driven advice by requiring brokers working for federally regulated financial institutions to report to their clients the commissions they receive for recommending and selling investment products. Transparency and full disclosure are essential to restore the investor confidence that our economy urgently needs.