05 January, 2022

Quora Answer: Do Financial Planners Get Kickbacks from Stocks They Recommend?

The following is my answer to a Quora question: “Do financial planners get kickbacks from the stocks they recommend? 

If they did, it would be a conflict of interest and a breach of ethics.  It would be a criminal offence, and they would lose their license.  Financial consultants are not supposed to have a relationship with the companies of the stocks they recommend, directly or indirectly.  If they do, they should declare that conflict of interest, and it should be documented.  Non-disclosure is a breach of compliance.




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