Impacts of Conflicts of Interest in the Financial Services Industry

This document is about a literature review examining the impacts of conflicts of interest in the financial services industry. It covers key areas such as the effects of advisor compensation schemes, bias in analyst reports, agency problems in mutual fund management, and the effectiveness of regulation and disclosure in mitigating these issues. The review finds substantial evidence that conflicts of interest can negatively impact investor outcomes, though the intangible benefits of financial advice may also be valuable.