Exhibit 1171 ยท Journal article
The Market for Financial Adviser Misconduct
Seven percent of advisers have misconduct records, and this share reaches more than 15% at some of the largest advisory firms.
Universe of U.S. financial advisers 2005-2015. Misconduct is concentrated in particular firms, repeat offenders are rehired by firms that already have high misconduct rates ("matching on misconduct"), and firms discipline about half of offenders. Offender turnover moves people and leaves the firm-level rate. Abstract read (OpenAlex).
- Source
- Egan, Matvos and Seru, Journal of Political Economy 127(1):233-295
- Date
- February 2019
- Quoted from
- Abstract
- Grade
- Peer-reviewed
- Document
- https://doi.org/10.1086/700735
- Accessed
- 2026-11-10
- Cited by
- Findings citing this exhibit
- Note
- Standing note: large administrative dataset; the authors' preferred explanation is consumer sophistication, so the result is about firms specializing in misconduct for a customer base, not about institutional capture. Use for firm-level concentration only.