The licensing and regulation of financial advisers is one way by which the government tries to deal with the problem of inadequate information that financial firms have about their customers.

Question

Quizplus · Accepted Answer

The licensing and regulation of financial advisers is aimed at ensuring that advisers have the necessary qualifications and adhere to ethical standards, addressing the issue of information asymmetry between advisers and clients, not between firms and customers.

The Licensing and Regulation of Financial Advisers Is One Way