Female FAs More Likely to Get Fired Over Misconduct
Male financial advisors are more likely to engage in bad behavior than their female counterparts and get away with it more often, according to a report cited by the Financial Times.
Female advisors are 20% more likely to get fired for misconduct than male advisors, according to a review of disciplinary records of 1.2 million U.S. brokers and advisors conducted by the National Bureau of Economic Research cited by the FT. Fired women brokers are also 30% less likely to find another job in the field within a year, according to the study.
It gets even worse for women working at firms that have no women in executive positions, where female brokers are 42% more likely to be let go for misconduct than men, the researchers wrote, according to the FT.
“Male executives seem to be more forgiving of misconduct by men relative to women,” wrote the authors of the study, who are professors at the University of Chicago, Stanford University and the University of Minnesota, according to the FT.
And that’s even though male brokers are twice as likely to engage in misconduct in the first place, according to the study, which looked at Finra’s broker records from 2005 to 2015, the FT writes.
While one in every 11 male advisors had negative marks on their records, only one in 33 female advisors did, the study found, according to the FT. Meanwhile, the proportion of female advisors in U.S. wealth management firms has stayed at about a quarter for the past decade, the paper writes.
The authors of the study say brokerages should probably punish their male advisors more harshly, according to Bloomberg. That’s because they’re twice as likely to be repeat offenders than women and, on average, their misconduct costs their brokerages 20% to settle, the news service writes.