We are a medium size community bank with a small Nondeposit Investment Product program - have one person who meets with clients and makes recommendations and so forth.
We do an internal audit of the area, but do not have an independent risk management program. I was wondering what other community banks do to monitor the recommendations made by the financial advisor.
Do you:
1) Have someone in MGMT review the recommendations made to clients for suitability
2) Have the financial advisor submit a report to the BOD detailing investment products and recommendations made to clients based on their risk tolerance, age, tax considerations, etc.
3) Some other type of review or monitoring
Below is a recent article detailing how a financial advisor working for a bank was suspended and fined for selling unsuitable investments to customers - something I am sure none of us want to see at our banks
http://www.bankinvestmentconsultant.com/...ble-investmentsAny comments are much appreciated. Thanks