Study reveals double standard for female advisor misconduct
Female financial advisers are punished more severely for misconduct than their male counterparts, a new report finds. Research conducted at the University of Chicago’s Booth School of Business Stigler Center shows that after misconduct, “female advisers are 20% more likely to lose their jobs, and 30% less likely to find new jobs relative to male advisers.” Read more details in an article at InvestmentNews below. Also, a field assistance bulletin published March 10 by the Department of Labor is intended to allay potential confusion regarding the possible delay in applicability of the fiduciary rule and provides some “breathing room” for the industry, legal experts have told Planadviser. Read the full story below.
Research finds double standard for misbehaving female advisers
While male advisers are more than three times as likely to engage in misconduct than female advisers, women face much more severe punishments at the firm and industry level, a report finds. According to research conducted at the University of Chicago’s Booth School of Business Stigler Center, female advisers are 50% more likely than male advisers to be fired or separated from their jobs following an incident of misconduct. They also face longer periods of unemployment and are 30% less likely to find a new position in the industry within a year, say researchers Mark Egan, Gregor Matvos and Amit Seru in a paper titled, “When Harry Fired Sally: The Double Standard in Punishing Misconduct.”
DOL Publishes Field Assistance Bulletin Regarding Fiduciary Rule Delay
By John Manganaro
Retirement plan advisers and services providers will likely breathe a little easier after reading a new field assistance bulletin published by the Department of Labor (DOL). The document outlines a “temporary enforcement policy” related to the DOL’s recent proposal to extend for 60 days the applicability date of the final rule defining who is a fiduciary under the Employee Retirement Income Security Act (ERISA).