There's a phrase no client wants to read in a sweeping report about the financial advisors who handle their savings: economy-wide misconduct. 

A new working paper by business school professors at the University of Chicago and University of Minnesota found that 7% of financial advisors have been disciplined for misconduct that ranges from putting clients in unsuitable investments to trading on client accounts without permission. That's a troubling mark for an industry that relies on the trust of clients. And some large, well-regarded firms have misconduct records that far exceed the average. Nearly 20% of financial advisors at Oppenheimer, with more than 2,000 advisors counted in the study, have misconduct records, according to the new paper.

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