Last month, we raised the issue of consumer mistrust of insurance and financial advisors. We explained that trust occurs when advisors establish credibility, reliability, intimacy, and low levels of self-interest. We then suggested that having trusting clients was a realistic and achievable goal for most advisors.  But it takes work. Read more...

To say that there is a lack of trust in the financial services business is like saying that Enron just lost a few points.  Today more than ever, consumers doubt their financial advisors.  Eventually, this doubt becomes active mistrust, and eventually mistrust sparks defections to other advisors. And the cycle begins again.   Read more...

A recent insurance marketing survey determined that 40% of investors who are dissatisfied with their financial advisor said that the number one reason was because the advisor didn’t stay in touch.  In a related study, a whopping 72% of those who made the decision to leave their advisor for a competitor cited broker “indifference” as grounds for change.   Read more...

According to state and federal regulators, volatile stock markets, record low interest rates, rising health care costs, increasing life expectancy, and even the devastating aftermath of hurricane Katrina have combined to create a “perfect storm” for investment fraud.  (No pun intended.) Read more...

What a difference a few years makes.The dirty stain made by consumer fraud, elder financial abuse, investment scams, corporate scandals, and “creative” accounting practices, has continued to soil the confidence of investors in the financial services industry. Read more...

Over time, the financial services industry has changed dramatically, moving from one way of conducting business to another, which has significantly affected the way advisors market and sell financial products.  These radical changes, or “paradigm shifts” have been driven by demand from both the industry and from investors, which has forced advisors to grow professionally.   Read more...

Some financial advisors still believe that nice people finish last.  They think that that embracing ethics – or doing the right thing for their clients 100 percent of the time – would limit their options, their opportunities, and their very ability to succeed in business.  Well, it’s time to think again. Read more...

Open any newspaper and you’ll see that investment scams of all shapes and sizes continue to grab headlines.  Recently, securities regulators and consumer watchdog groups alerted millions of investors to the fact that insurance agents (and former agents or brokers) currently are being actively recruited to market and sell investment scams at record levels.   Therefore, regulators and senior groups alike have issued stern warnings to thoroughly investigate new investment opportunities and the advisors that sell them before handing over their money.   Read more...

Recently, securities regulators and watchdog groups have alerted millions of consumers to this years’ most common schemes and scams.  Nicknamed “The Dirty Dozen”, the top twelve rip-offs are ranked in order of prevalence and seriousness, as follows: Read more...

Effective January 1, 2004, Senate Bill 620 (SB 620) in California has set stricter rules for soliciting annuities to seniors age 60 and older and violators are now subject to stiff enforcement action for any "unnecessary replacements".  Read more...