Your link is broken...If you actually listened to the Peter Schiff show -- you would've actually heard him say that he is forced to spy on his customers by Federal law. He can go to jail if he doesn't spy on his customers enough. He is forced to spend millions of dollars to find out where money wires/transfers are going to and from, etc. Go listen to the show before you take things out of context. Terrible job Rossini
The link is broken. But I'd just like to reiterate what the two previous posters have stated, on today's radio show Peter stated how he is FORCED to spy on his customers through government regulations and compliance. If he ignores these, he gets sued and/or goes out of business.
This shouldn't be anything new to anyone. Most of the information that brokerages gather isn't necessarily for illegal activity or terrorist activities. It is required by FINRA to makes sure what you are doing is suitable for the client. The millions that Peter spends are the costs for employing a compliance department.
I'm completely against government mandating the gathering of all bank account information and net worth and where people have money. That said, if a financial advisor is doing his job he should know as many specific details as possible about client's situation. Most brokers are one step above prostitutes. These compliance mandates are wrong morally, but I am firmly convinced that the average brokerage client is better off because of them
Really Mark? Government regulations are required to keep brokers honest? Wouldn't free market competition take care of that much more efficiently? Dishonest brokers would quickly go out of business -- and be personally liable for their breach of fiduciary duties to their clients, in a free society. What politically imposed, coercive regulation does, in the main, is protect brokers from competition and liability for their misdeeds.
This is a surprise? If you're using someone else's system....you have to assume that they have access to your activity while using their system
ReplyDeleteMaybe the title should be: I'm forced to spy on my customers.
ReplyDeleteYour link is broken...If you actually listened to the Peter Schiff show -- you would've actually heard him say that he is forced to spy on his customers by Federal law. He can go to jail if he doesn't spy on his customers enough. He is forced to spend millions of dollars to find out where money wires/transfers are going to and from, etc. Go listen to the show before you take things out of context. Terrible job Rossini
ReplyDeleteThe link is broken. But I'd just like to reiterate what the two previous posters have stated, on today's radio show Peter stated how he is FORCED to spy on his customers through government regulations and compliance. If he ignores these, he gets sued and/or goes out of business.
ReplyDeleteThis shouldn't be anything new to anyone. Most of the information that brokerages gather isn't necessarily for illegal activity or terrorist activities. It is required by FINRA to makes sure what you are doing is suitable for the client. The millions that Peter spends are the costs for employing a compliance department.
ReplyDeleteI'm completely against government mandating the gathering of all bank account information and net worth and where people have money. That said, if a financial advisor is doing his job he should know as many specific details as possible about client's situation. Most brokers are one step above prostitutes. These compliance mandates are wrong morally, but I am firmly convinced that the average brokerage client is better off because of them
Really Mark? Government regulations are required to keep brokers honest? Wouldn't free market competition take care of that much more efficiently? Dishonest brokers would quickly go out of business -- and be personally liable for their breach of fiduciary duties to their clients, in a free society. What politically imposed, coercive regulation does, in the main, is protect brokers from competition and liability for their misdeeds.
ReplyDelete