Rate your broker.
In the May edition of the 16,000 strong SII members’ magazine, Securities & Investment Review (S&IR) the editorial “Why we need better feedback” praises the eBay customer ratings system as a key factor in the company’s success.
…In the editorial Mr Culhane argues that eBay customer feedback relies entirely on individuals wanting to protect and enhance their reputation, using no legal rules or power. He draws a parallel with the financial world where reputation and trust are crucial. “What is needed is a measure of proportionality that discriminates between firms with systemic problems and those with occasional blips. Wholesale, private client and retail trades would all be rated”, he says.
The effect on reputations when these ratings are published would be immense: “Counterparties and customers would be able to ascertain the reputation and integrity of a firm immediately. They would have a more informed opinion gathered from tens of thousands of transactions.” Says Mr Culhane.
Firms that adopt a principled approach, as expressed in the SII Code of Conduct, and actively demonstrate their fairness, honesty and integrity will be the winners, the editorial says.
Wonder if Mr. Culhane has seen AmazonBay?
Thanks to David H for the pointer.
