New-account forms are designed to capture as much information as possible at the moment a client commits to a relationship and/or transaction. One hopes this will be the only time so much personal disclosure is required. FINRA requires that this information be updated at least every few years. So we can apologize for the intrusion and blame the exercise on regulatory compliance.
So what does a no-worry advisory style look like? It involves putting clients at the heart of your practice in every way. It involves a robust commitment to comprehensive fact-finding, a full embrace of the new Department of Labor fiduciary standard (when it goes live next year), and a by-the-books approach to product suitability.
ccording to the 2016 Investment Management Compliance Testing Survey of 730 investment-advisor firms, cybersecurity/privacy/identity theft is the top compliance issue of the year, with 88 percent of respondents ranking it number one.
Real estate E&O Insurance 101 is designed to give you an overview of what an E&O insurance policy offers real estate agents, brokers, and owners when it comes to protecting your company and yourself against claims and lawsuits brought about by current and past transactions or clients.
Should solicitation “tricksters” be named to the Sales Hall of Shame? Yes, because advisors who play games in order to gain appointments hurt their prospective customers, while smearing the good name of competitors who sell straight. And they’re not doing themselves any favors, either.
Under new rules effective May 16, 2016, the public can now invest in early-stage start-ups via online platforms that are subject to registration and disclosure requirements. For their part, consumers are limited in how much they can invest based on their income and net worth. The U.S. government permitted crowdfunded investing as part of its Jumpstart Our Business Startups (JOBS) Act and the SEC’s enabling “Regulation Crowdfunding.”
As a financial advisor, you’ve probably read countless stories about how to stay out of hot water with your clients. You’ve also learned about the many ways advisors can disappoint their clients, resulting in complaints, lawsuits, and E&O insurance claims. The problem with such discussions is they deal with symptoms, not root causes. Consider this example.