The National Ethics Bureau is urging its members to restore public trust in the wake of the Bernie Madoff scandal.

“The $50 billion Madoff Ponzi scheme has done serious damage to our industry,” says NEB Chairman Steven R. McCarty. “It has made consumers question the integrity of their financial advisors and weakened their confidence in our industry’s products and services. Advisors should remind the public that the vast majority of financial professionals and companies are ethical and can play a key role in helping them through the current economic crisis.”

Specifically, McCarty urged NEB members to contact their clients and local media to explain the steps required to verify the background of a financial advisor. These should include contacting the Financial Industry Regulatory Authority (FINRA), the Securities Exchange Commission, and the National Ethics Bureau. Consumers should also contact state insurance and securities departments, McCarty said.

“Advisors should explain that NEB’s Ethics Check System™, our background-check process, is extremely comprehensive,” says McCarty. He said NEB not only checks for criminal and civil violations, but also verifies state-level licenses and continuing education credits. In addition, NEB makes sure its members have not declared bankruptcy in the prior seven years.

McCarty reminds advisors that most consumers don’t have the time or inclination to do extensive background checking. “For these consumers, a single call to the National Ethics Bureau will cover all the bases,” McCarty says.

About the NEA:
The National Ethics Association (NEA) is a membership organization of over 17,000 business professionals from various industries. Since 2001, the NEA (and its predecessor, the National Ethics Bureau) has provided its members with ethics and compliance resources designed to build and protect their businesses.