High Commission Products

High commission products are securities, such as private placements, limited liability partnerships, penny stocks, securities created or packaged by an investment bank or broker-dealer, and insurance products such as variable annuities.  A financial adviser receives substantially higher compensation upon the sale of these products to his clients than if the client were to purchase other (perhaps even similar) types of investment products.

Financial advisers inherently have a conflict of interest when they receive compensation for advising you in connection with the purchase and sale of securities.  In fact, often times a broker-dealer will further incentivize financial advisers to push investments on their clients by secretly offering the financial adviser bonus compensation upon the sale of these products.  Moreover, the financial adviser may not adequately inform the client that the fees or commissions are considered high in relation to other types of investments.

Clients are often guided into these high commission products solely for the benefit of the financial adviser, and to the detriment of the client.

If you suspectthat your financial adviser advised you to purchase high commission products, or engaged in another sales practice abuse, please contact Wittenberg Law to discuss your legal rights and options.