hi, do i have to disclose to my clients, that i get more revenues if I sell the bank’s own products vs. third party products?
yes… disclose all conflicts of interest or potential conflicts of interest to clients and potential clients
I don’t think this is a conflict of interest, many advisors sell products with different compensation structures, but the cost to the client is the same. I’ve never heard of these types of compensation differences needing to be disclosed to the client - I’m sure there’s a reason why since these are pretty common.
I don’t think so becase your clients should expect that you are getting compensated for selling products.
Ya on second thought I guess you guys are right. Not a conflict of interest. If your product was worse for the client would it be a conflict of interest and would it need to be disclosed?
I believe its a safe assumption for a client that the seller is obviously getting an above average commission on the products he/she is selling compared to other similar products…but it would be a good idea if the seller actually discloses the arrangement.
It would help the client make a better decision.