Bye-bye to the 90:10 ratio, where 90 percent of any bank's customers' mutual funds end up in that bank's own mutual funds.
While the law requires investment advisers to consider the customer's best interest when recommending mutual funds, this 90:10 ratio belies its implementation.
If Bank Leumi's mutual funds are so great that 90 percent of its customers are best served by investing in them, then why do other banks not send their customers flocking to Pia and Psagot?
The Israel Securities Authority has finally woken up, and its Leumi probe has already made a difference. The bank's investment advisers have virtually ceased recommending Leumi group funds, and the ratio has changed to 85:15.
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