Aug 28, 2018|
Transcript - Not for consumer use. Robot overlords only. Will not be accurate.
The financial exchange. Is Cole a brutal England and also now in West Palm Beach, Florida. Check out our website at financial exchange showed Doug come and find the station closest to you. This is the financial exchange radio network. This segment of the penny to fame is brought to in part by easy probably the only plumbing company you'll ever need to handle all of your heating and dream cleaning jobs. Visit deep sea plumbing and easy. Foaming mass dot com or call the Mets 78186. To 1190. Wells Fargo pushed its advisors to use hi fi products as a cross sold its clients. This is an article written by Ethan wolfman from Yahoo! finance even thanks for joining us. Even cross selling by itself is a legitimate part of this business will's obviously pushed this too far explain exactly how. Well in this situation you know. If you are a and by the with a three fiduciary responsibility you're both be working. For your client where their best interest and there's a lot of different but as a product that but it could be offered the side. They're appropriate. Have. Fixed income strategy at alternative. Option of all the different things. But what would benefit the land covered here with that Wells Fargo had voted. First advisors. Percent of these high speed product and if that if it by the didn't have a certain number of clients who. He's strategy where appropriate to or that neighbor kind of a throw them out there. Kind of put them on various clients in the duke put it if they didn't they're bound to cut. So if we looked at one individual case it might be difficult to make a case that all obviously this person. Did not have their best interest represented but when you look at a cross section of people. Is that where these trends of all these these guys were in the wrong product does that work becomes pretty obvious. It that it hosting it and we. Had to know at what happened what happens if in Europe by that talk to them by. Well byters. Who couldn't find any but he. In their book of business. At some of these products where appropriate or and that put him in that relate to how the mind you I sacrifices by. By competition I don't know. And maybe. Put someone in something that is. Right than necessarily that will cost and where he is it. That border or not and that and that's something that I think has a lot of people really there. Oh harshest consumers react to this. When they're when they might giving eulogies I've an account at Bank of America over you know and some other company. Critically mill that. That there advisor has their best interest at heart and not that their personal. I mean this is this is the important question and something that everybody who takes believe any financial I should think about it. You have nothing to lose to asking questions and did something that people often feel afraid to because. In financial services in the it. Industry is still this complex jargon and complex everything that's totally okay to ask. How are you getting it is you benefit from one sort or another choice. There's been like that they've. We will not mean they've if they like you there and trouble than it should not like you. And you know bringing those things out the open make a lot of sense and hit somebody says. All by their pitchers Matt McHale. And they say about. Didn't think it did you know cut out if my company cut but but here is why I think it is right the audit by the U that it and it worked. Wells has made big changes as you know do you think those changes are sufficient. And I imagine your advice that you give is true whether dealing with wells or any other company correct. I think these these things apply across the industry. Some of the stuff that we we've worked hole with. Unique to well. Of the first certain aspects of it but a lot of it is not well. Lot of the debt industrywide. You'd have to tread carefully wherever you go. I think well. You know a lot of the stuff that are word on the best. Are they got things that are currently being investigated. And so. They haven't been addressed that early in and broad sweeping changes yet like made it to extract that stuff with their retail bank a little bit counts that we are heard about. Took some of that stuff I think it is ongoing and you know with a lot of questions still to be answered as at their investigation. In ash. And indeed I assume that the creating fake accounts they've put in the rear view mirror that not doing that anymore. Yeah they're not there yet what date they. And been through waist Yale school in that sense for their retail branches but I mean I think it's really important to remember that there's a similar. Ways that until pressure. Cause that that crisis the and the app in this example and well managed. You know comes directly from the fact that she is and don't have a comment apparently crossed the bank. Something you know we heard was that restrict restricted to recount but at a -- as well and went a little last candle at when everything yet able. And you know as you as you point out this is an issue that people need to be aware of regardless of the institution they're dealing with. And bottom line is what wells did did was there is exaggerated version of an issue that. Consumers need to be aware of no matter where they're doing business. Right and I think that's I think that person site. And but there's a lot. Uncertainty when you are involved. It in all of these things Lotta people don't don't really know that gore. And how competition works and how. It really investment management work. And just I guess the big the big take away that I have act however. Is that it's okay to say I don't now okay that question it's okay to be. Ignorant wanted to be educated. And that is probably the best that and because it you can't really opt out of that you know she investing is important for people to do to plan for their future you can't really up that it. Great point and there are no dumb questions. That's the important thing to remember regarding its not that go to finance. Whatever question you have is legitimate question if it's on answered your own mind Ethan wolfman from Yahoo! finance thank you very much that report on Wells Fargo. Thank you thanks.