Misleading explanation of their compensation structure, including inadequate disclosure of indirect compensation sources.
Selective verbal disclosure of fees, expenses and/or product/contract restrictions, while key details are buried in lengthy legal documents.
Failing to disclose other incentives, such as participation in sales contests and/or qualification for sales conferences, based on sales to your employees.
Being restricted to selling only “proprietary” products (investment products sponsored by their firm) and failing to disclose that they are only selling proprietary products and/or that more cost efficient and/or higher rated products may be available.
Using tools or other resources that lead the consumer to a sale. Software tools that may contain leading questions, or financial planning questionnaires that are geared to identify sales opportunities.
Improperly retaining your personal information (despite regulatory or firm rules) and using that information to solicit your employees if they later switch firms or establish their own independent advisory firm or other business that would benefit from the use of this personal information.
Advisors hired by plan vendors have access to macro-plan participant data. This data may be used to subject you to sales and marketing campaigns that are geared towards outcomes that benefit the vendor.
Your accounts may be reassigned to another financial advisor without your approval.
Advisors hired by plan vendors are not endorsed to sell you other products. They are on campus to provide service and support. The sale of additional products was not an agreed term and the products being sold to you have not been reviewed or approved by your employer.
Advisors hired by plan sponsors may be covered by a compensation plan that provides them both direct and indirect compensation incentives to move your funds out of your employer’s plan into higher-cost investment products.