"These authors conduct an ingenious analysis of a unique BrokerCheck dataset that covers 644,277 currently-registered financial advisors in the United States, and an additional 638,528 who have left the industry between 2005 and 2015..."
"More than 7 percent of registered advisors have been disciplined for misconduct or fraud..."
"Perhaps the most surprising finding is the high proportion of repeat offenders still present in the industry. Among advisors with documented misconduct, 38 percent were repeat offenders..."
"Advisors who commit misconduct do suffer career penalties. Forty eight percent leave their current jobs within a year. Yet almost half of those who leave (44 percent) find employment in the industry within the year..."
"That misconduct is targeted at unsophisticated, less educated, and elderly consumers, is troubling, because these are the segments of the population that the existing regulation is already trying to help..."