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I have an honest question here. I'm not trying to start a debate, I just want to make sure I have my information correct.
If I were a new client and went to a broker and asked for a performance report tracking the success or failure of their clients, is there a brokerage house policy, SEC/FIA rule and/or Federal Law that requires them to supply or not supply that information?
I'm familiar with the rule about sharing information with accredited investors as defined by Rule 501 of Regulation D of the Securities Act of 1933, as well as the Investment Advisors Act of 1040. I also know that regulators have ruled that sharing information is considered general advertising in violation of the act. But that doesn't appear to fully address the issue.
What I've been told (by those willing to even discuss it) is that in terms of specific individuals, not only NO, but hell no. It would violate nearly every fiduciary compliance regulation out there (though they don't mention which ones).
So, if I were a potential investor and wanted to know a brokers' track record of success, could they provide me with an accurate and specific tracking of their clients' performance?
Most professional have to keep records of their activities, I'm just curious as to why brokers don't?
Again, just want to make sure I'm not missing anything.
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