August 29, 2010
The following are my comments on File Number 4-606, SEC’s study on investment advisers, brokers and dealers:
- I didn’t know the difference for the broker, adviser, and dealer, even though we have investments in the stock market.
- I would suggest that when dealing with a adviser, broker, or dealer, that the SEC have written in understandable English a card that must be presented to each client that describes the duties of each; the cost they charge the client per transaction; and who pays their salaries -- the client or some company. If this information is not presented to each client, then the broker, adviser, or dealer is fined a certain amount of money. After 3 fines, then they no longer are permitted to practice in this career field.
- I have no idea what the standards are for current brokers. Whatever they are, these standards don’t contain ethical practices.
- The standards for a broker should include honesty. Brokers handling another person’s money should be ethical and provide accurate information to the client. If a broker does not do this, there should be NO FINE. The broker should be removed from this career field.
I also think that the way our current system operates, that the SEC won’t be able to change the corruption that exists. As long as a broker is permitted to lure investors into putting their money into investments that pay their salary, then no change can occur.
Thank you for permitting to comment on this issue.
Carolyn Peterson