Investor and Industry Perspectives on Investment Advisers and Broker-Dealers
ResearchPublished 2008
In theory, financial professionals are relatively distinct: A broker conducts transactions in securities on behalf of others; a dealer buys and sells securities for his or her own accounts; and an investment adviser provides advice to others regarding securities. Broker-dealers and investment advisers are subject to different regulatory structures. But trends in the financial services market since the early 1990s have blurred the boundaries between them. Regulatory reform requires a clearer understanding of the industry’s complexities. The U.S. Securities and Exchange Commission asked RAND to conduct this study to examine the professionals’ current business practices and whether investors understand differences between and relationships among them. The report describes a heterogeneous industry, with firms taking many different forms and offering a multitude of services and products and with investors failing to distinguish broker-dealers and investment advisers along regulatory lines. Despite this, investors express high levels of satisfaction with the services they receive from their own financial service providers. This satisfaction was much more frequently reported to arise from the personal attention the investor receives than from the actual financial returns arising from this relationship.
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- Copyright: RAND Corporation
- Availability: Available
- Year: 2008
- Print Format: Paperback
- Paperback Pages: 228
- Paperback Price: $48.00
- Paperback ISBN/EAN: 978-0-8330-4403-7
- Document Number: TR-556-SEC
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Hung, Angela A., Noreen Clancy, Jeff Emmett Dominitz, Eric Talley, Claude Berrebi, and Farrukh Suvankulov, Investor and Industry Perspectives on Investment Advisers and Broker-Dealers, RAND Corporation, TR-556-SEC, 2008. As of September 9, 2024: https://www.rand.org/pubs/technical_reports/TR556.html
Hung, Angela A., Noreen Clancy, Jeff Emmett Dominitz, Eric Talley, Claude Berrebi, and Farrukh Suvankulov, Investor and Industry Perspectives on Investment Advisers and Broker-Dealers. Santa Monica, CA: RAND Corporation, 2008. https://www.rand.org/pubs/technical_reports/TR556.html. Also available in print form.
The research described in this report was conducted by the LRN-RAND Center for Corporate Ethics, Law, and Governance within the RAND Institute for Civil Justice and commissioned by the U.S. Securities and Exchange Commission (SEC).
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