Released: August 29, 2007

Financial advice: Get it in writing

Source: Money Magazine

If you’re an investment news junkie, you may remember hearing about the SEC and NASD stepping up fines in recent years on financial firms that give false or misleading statements to customers.

The fines worked, to a point. The companies started clamping down on those kinds of statements in written materials that clients get. Statements like:

• “Our annuity gives you the upside of the market without the risk.”
• “Our award-winning research means you don’t have to settle for index- fund returns.”
• “You won’t pay a fee to invest in this.”

But don’t feel all safe and cozy just because the watchdogs seem to be on the job. Some financial advisers will still say anything to make a sale.

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