‘Marked’ Advisers Finding It Harder To Move
by Daisy Maxey and featured in Dow Jones Newswire July, 2010: NEW YORK (Dow Jones) - Financial advisers with multiple blemishes on their records are finding it tougher to move from one broker-dealer to another these days. Not all that long ago, the new firm might look past an adviser's "marks" (for, say, selling an unsuitable investment to a client) if they brought a healthy book of business and a talent for recruiting clients. But in the post-crisis world of both heightened litigation and increased regulatory scrutiny, that isn't happening as often. Mindy Diamond, president of Chester, N.J.-based search firm Diamond Consultants, says, "We're living in a much more hyper-vigilant compliance culture where the appetite for advisers with marks (on their records) is much less than it has ever been before." Diamond said broker-dealers are...
