FINRA: Advisers, brokers must warn of rising interest rate effect

05/30/2013 | Reuters

The risk of bond values plummeting is increasing as interest rates rise, and investors must be warned by financial advisers and brokers, the Financial Industry Regulatory Authority says. Investors who buy bonds instead of guaranteed bank certificates of deposit to get higher yield might not be aware of the greater risk, according to the regulator. Advisers who don't properly inform clients could face legal problems, lawyers say.

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