Greedy for profits

Financial institutions should recommend Government bonds to risk adverse investors. However, the distributor earns only a commission of 0.5% when they sell the bond.

The distributor preferred to push the credit linked securities because they can earn a commission of 3% to 5%. Their representative were not properly trained on the product. They did not explain the product properly and caused the investors to invest in a high risk product that caused the loss of a substantial portion or nearly all of their hard earned savings.

Surely, the financial institution should understand why the issuer gave a high commission of 3% to 5% to market the product. By being greedy for a bigger profit, these financial institutions have caused big loss to the customers that trusted them.