Is it illegal for a financial advisor to inform you on an investment if he is gaining commission from telin u?

Question

please include any links that may have helped you with this question and prove what you have said please

Answer 1

no.  if that were the case, there would be no such thing as financial advisors!

of course they recommend whatever gives them the best commission.  which is why you should always shell out a couple hundred bucks yourself and go to a fee-based financial advisor, who only makes money when you give it to him, and doesn't get commissions.

if the guy you're going to isn't telling you how he's making his money, he may be in violation of professional or ethical standards, but not any laws.

Answer 2

why would he advise you for free. he is doing it only to earn not for charity or for social reasons,

Answer 3

Its no illegal but they have to tell you about it.

The Division takes the position that an investment adviser must disclose to clients all material information regarding its compensation, such as if the adviser's fee is higher than the fee typically charged by other advisers for similar services (in most cases, this disclosure is necessary if the annual fee is three percent of assets or higher). An investment adviser must disclose all potential conflicts of interest between the adviser and its clients, even if the adviser believes that a conflict has not affected and will not affect the adviser's recommendations to its clients. This obligation to disclose conflicts of interest includes the obligation to disclose any benefits the adviser may receive from third parties as a result of its recommendations to clients.