The financial-services industry has a perennial consumer-trust problem. Year after year, studies show that consumers don’t trust financial institutions or financial advisors to do what’s right. A recent survey reveals that consumer mistrust of the financial-services industry slipped even further in 2016.
You probably know this already. But allow us to remind you of the zeal with which attorneys target financial advisors who mess up. Here are six of their typical marketing strategies.
It is no secret we live in a litigious society made worse by a difficult market economy. Lawsuits are filed every day in every part of the country. There are no guarantees that you will never receive a demand letter or be named in a lawsuit concerning your professional services as a real estate agent. However, by educating and familiarizing yourself with the most common types of claims made against our insureds, you may be able to recognize and hopefully avoid similar situations.
May is Disability Insurance Awareness Month (DIAM), which . . . is intended to raise awareness among consumers about the need to protect their income in the event they suffer a disabling injury or illness and can’t work.
To become a top-tier professional, you must not only be highly ethical, but also highly compliant in terms of adhering to the law. At first blush, these two elements appear to be at odds. But as the Chinese have taught us, opposing forces are usually complementary—part of a unified duality called “yin and yang.” As that iconic black-and-white symbol suggests, ethics and compliance are both essential to your success; doing one without the other is a guarantee of mediocrity—or worse.
Suitability enforcement roared back last year, according to Washington D.C. law firm Sutherland Asbill & Brennan LLP. Its annual survey of FINRA enforcement actions reported 76 suitability cases in 2015, resulting in $18.3 million in fines.
The due diligence requirements of the financial-services industry have become dynamic. Our objective is not to make you an expert; your expertise is in client management. Rather, our objective is to give you the tools to build a defensible position. Documentation is the key to your defense. Having an organized set of files with your information dated and noted will move the discussion from dispute resolution to more productive uses of your time and expertise.
We’ve said it before, but we’ll say it again. The vast majority of ethical/legal problems advisors encounter are self-inflicted. Sophisticated, large Ponzi schemers are outliers. Much more common are advisors who a.) make unforced errors through inattention or sloppiness or b.) aren’t well grounded in principle.