August 29, 2010
The following are my comments on File Number 4-606, SECís study on investment advisers, brokers and dealers:
- I didnít 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 donít contain ethical practices.
- The standards for a broker should include honesty. Brokers handling another personís 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 wonít 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.