Brokerage Firms Under Investigation for Incentive-Based Product Sales - NBC10 Boston

Brokerage Firms Under Investigation for Incentive-Based Product Sales

Find NBC Boston in your area

Channel 10 on most providers

Channel 15, 60 and 8 Over the Air



    Checklist for a Healthier Fall
    NBC10 Boston

    Massachusetts' securities regulator is investigating three brokerage firms following a report that their financial advisers were paid to get customers to buy more expensive products. 

    Secretary of the Commonwealth William Gavin’s office confirmed to NBC10 Boston that letters were sent to Fidelity, Charles Schwab Corp. and TD Ameritrade. These letters asked the businesses for information regarding how they pay their financial advisers. 

    The Wall Street Journal first reported the investigation and interviewed dozens of former employees. Almost everyone interviewed reported they were encouraged to sell products that would end up costing the customer more. 

    A former employee of Fidelity told the WSJ that the higher-priced products would earn a larger commission for advisers, and that yearly bonuses also incentivized the push for bigger sales. 

    White Official Tells Black Woman He Belonged to Master Race

    [NATL] White Official Tells Black Woman He Belonged to Master Race

    Some Leavenworth County, Kansas, officials are calling for Commissioner Louis Klemp's resignation after he insulted a black woman who had just presented a land-use study to the commission. "I don't want you to think I am picking on you because we are part of the master race. You have a gap in your teeth. We are part of the master race, don't you forget that," Klemp said. 

    (Published Friday, Nov. 16, 2018)

    In an email to the Boston Business Journal, Debra O’Malley, a spokeswoman for Galvin said in part, "In addition, the division is concerned with whether the firms disclose the compensation tied to these products and services as there may be material conflicts of interest involved." 

    The firms responded to the WSJ, saying that measures are in place to make sure advisers don’t push any unnecessary product on a customer.  

    Get the latest from NBC Boston anywhere, anytime:


    Download our FREE app for iPhone, iPad and Android. You can also follow us on Facebook, Twitter and Instagram, and sign up for our e-mail newsletters.