What Is Riskless Principal?

A riskless principal transaction is a trade where the broker-dealer is acting as a riskless counterparty to the trade. This means that the broker-dealer is taking on the risk of the trade on behalf of their client. The client does not have to post any margin or collateral with the broker-dealer, and the broker-dealer does … Read more

What Is Misselling?

The Financial Services Authority (FSA) defines “misselling” as “a marketing term used to describe a number of different situations in which a financial services provider gives incorrect or misleading information to a customer, or provides a product or service which is not suitable for the customer’s needs.” There are many different types of financial misselling, … Read more