Churning

In finance, the word churning is used to describe all dealings on the part of a wealth manager performed with the sole aim of earning commissions, without taking a client’s best interests into account.

A wealth manager may, for example, initiate completely disproportionate purchase or sale processes which do not serve their client, but do serve to generate additional wealth management fees. Churning contravenes wealth management obligations and codes of conduct.

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Equities trading in Switzerland

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Expert Benjamin Manz
Benjamin Manz is CEO of moneyland.ch and an independent expert on banking and finance.