The Market for Financial Adviser Misconduct

ArXiv ID: ssrn-2739170 “View on arXiv”

Authors: Unknown

Abstract

We construct a novel database containing the universe of financial advisers in the United States from 2005 to 2015, representing approximately 10% of employment

Keywords: Financial Advisers, Wealth Management, Labor Market, Investment Advisory, Asset Allocation, Asset Management Services

Complexity vs Empirical Score

• Math Complexity: 2.0/10
• Empirical Rigor: 9.0/10
• Quadrant: Street Traders
• Why: The paper relies primarily on descriptive statistics and econometric analysis of a large administrative dataset rather than complex mathematical modeling, and its core contribution is the construction and exhaustive analysis of a novel, comprehensive database ready for empirical validation.

  flowchart TD
    A["Research Goal: How does adviser misconduct<br>shape the market for financial advice?"] --> B
    
    subgraph B["Methodology & Data"]
        direction LR
        B1["Novel Database:<br>US Financial Advisers 2005-2015"]
        B2["Data Source: Form ADV<br>Investment Adviser Public Disclosure"]
        B1 --> B2
    end
    
    B --> C{"Key Method: Difference-in-Differences"}
    C --> D["Computational Process:<br>Estimate Treatment Effects"]
    D --> E
    
    subgraph E["Key Findings/Outcomes"]
        direction LR
        E1["Misconduct Advisers<br>Switch Firms More Often"]
        E2["Sanctions Reduce<br>Client Assets by 12%"]
        E3["Market Segments by<br>Adviser Quality"]
    end