Broker-dealers should better manage conflicts of interest at their firms by more closely monitoring broker compensation and reviewing new financial products, among other practices, according to findings published late Monday by Wall Street’s industry-funded watchdog. The report on conflicts of interest in the broker-dealer industry, conducted by the Financial Industry Regulatory Authority, follows from a process that began last year when FINRA said it would begin requesting information from 14 firms. The regulatory authority launched the review out of concern that certain financial incentives, including commission-based compensation to brokers, could lead to promotions of products that may not be the best choice for investors. More on Reuters here.
