The way major investment firms pay their staff actually forces financial advisors to commit fraud against their own clients.

Forgivable loans are massive upfront cash payments that create a hidden debt the advisor must pay back if they don't meet strict targets. This creates a high-pressure environment where the only way to avoid financial ruin is to lie to customers or churn accounts for fees. We think of stockbroker misconduct as the result of a few bad apples or greedy individuals. In reality, the compensation structure of the industry is a machine designed to produce unethical behavior. An advisor's personal liquidity needs often outweigh their professional duty to provide honest advice.