Investment consultants: the heart of systemic failure?

In this engaging Edmond J Safra Research Lab Working Paper, Investment consultants and institutional corruption, lawyer Jay Youngdahl looks candidly at investment consultants in the United States. Describing them as gatekeepers between institutional investors and the peddlers of financial products, the author identifies ethically dodgy and widespread practices, and suggests they are at the heart of failure in the financial system. While he points to “a reimagined investment consulting industry”, Youngdahl declines to sell readers a solution, sticking instead to a highly personable litany of consultants’ avarice and the widely held warped perceptions that allow it to continue.

Read it here.