Banking investment programs averaged only four formal written customer complaints for every 10,000 investment transactions last year, down from 7 per 10,000 transactions in 1998 and 14.2 complaints in 1994. Further, the study says only a fraction of customer investment complaints concern sales practices. Many are about sloppy paperwork, such as misspelled names. Those numbers don't surprise Heywood Sloane of the Bank Securities Association in Wayne, Penn. Because of the regulatory structure that surrounds banks, they're more sensitive to issues of compliance and suitability.
Banks are concerned about corporate image at a much smaller level because of regulatory structure.
Know exactly what the product will cost you. Know the tax consequences of an investment product. Ask about the salesperson's commission. Ask about the salesperson's educational background, work history and other qualifications. And, finally, see if any of the products you're considering can be purchased for less elsewhere.