Small Producers Are Crazy, Large Producers Are Eccentric
July 29, 2019 By Jon Henschen, WealthManagement.com You’ve probably heard the saying, “The poor are crazy, the rich just eccentric.” It originates from Ellen Raskin’s 1979 mystery novel, The Westing Game, and it addresses the view that the rich are granted a lot more leeway in their actions than the poor. The rich earn respect just by having money, while the poor are considered disposable and crazy. At the compliance level, the broker/dealer community lives this in spades. For example, when a $200,000 producer forges a signature, he’ll be terminated immediately, while a $2 million producer committing the same offense may see a $5,000 fine and a verbal slap on the wrist. Broker/dealers look at compliance disclosures on a risk-reward basis. Advisors with ample production can also have multiple Financial Industry Regulatory Authority (FINRA) disclosures, and...
