It truly amazes me that anyone could actually believe that the bank, the investment broker, in fact anyone in Financial Services gives a rat’s ass about their clients interest.
It is totally about how much money they can make out of the client regardless of the result for the client.
We have in the UK had so many scandals, from banks persuading people to pay for Payment Protection Insurance on their loans who could not claim on the policy. The 85 year old man who was sold a 5 year bond that meant he could not touch the money for the five years and of course died before the 5 years.
Like cigarettes every financial product should carry the warning ‘You may make money from this product or you may lose money but we the provider will always make money out of it.’
The major problem is that of course people want to earn a living so for example if a client comes with 100,000 to invest for say 5 years and there are 2 products, product A will give the broker 5000 in commission but will give the client a good return. Product b will give the broker 10000 in commission but is a poor investment.
Now the Broker could say I will forgo the additional 5000 and look after my client or I could grab the 10000 and in five years time it is the client’s problem. Which option do you think they will go for?