Our exhaustive library of resources and guidelines designed to help professionals maintain a sterling reputation founded on trust, ethics, and best practices.
Financial advisors have a perennial trust problem. And it isn’t getting any better. According to a new survey published by wealth management firm Personal Capital, 32 percent of U.S. adults believe financial advisors are likely to take advantage of them. What’s more, 70 percent of the 2,178 American consumers surveyed said recent financial-industry news has given them second thoughts about trusting anyone with their money.
A fellow who bills himself as an industry marketing expert recently sent me an email. It was a very well put together, nice-looking offer to procure more than 200 marketing ideas. To learn them all, I had to provide him with my contact information. This guy made a critical error, from my perspective. He sent three of his marketing ideas as a teaser. Two of the three advocated dishonesty to get prospects attention. They weren’t whopping lies, just a little shy of 100 percent true.
As the number of consumers using social-media networking sites continues to grow, FINRA has provided ongoing guidance for financial advisors wanting to promote their firms online without getting into trouble.
In financial services, not only does crime generally not pay, but being a serial regulatory offender often results in tougher regulatory scrutiny. That’s according to a press release from the Financial Industry Regulatory Authority (FINRA) Board of Governors.
Financial advisors who work the senior marketplace are no strangers to the topic of senior financial abuse. For years, advisors and their FMOs, RIAs, broker-dealers, financial institutions, and regulators have grappled with the problem of how to protect seniors against people they know who steal their money.
Everyone wants to be a hero, right? Now financial advisors can score big points with their clients by helping them find lost life insurance policies. And better yet, they can render assistance by simply referring clients to a free locator service offered by the National Association of Insurance Commissioners. No work and a lot of credit make this service a win/win for both advisors and their clients.
Remember your high school days . . . a time when your teachers told you what you needed to know and then tested you on it? Unfortunately, real life has a way of testing us without giving us a study guide first—unless you’re an SEC- or state-regulated investment advisor.
Those of you of a certain age might recall the 1980s bestseller, “All I Really Need to Know I Learned in Kindergarten,” by Robert Fulgham. If you’re not of that age, then I should explain that the book was a series of short essays on how the world would be a whole lot happier if adults behaved more like schoolchildren. Some of the lessons Fulghum stressed were the importance of being kind, of sharing with one another, of cleaning up one’s messes. One of the lessons Fulghum should have covered is the importance of not being a blabbermouth.
For most financial advisors, regulatory compliance is not a favorite part of their job. In fact, they often express negative opinions about it. But when it comes to assuring client privacy, the industry has an effective regulatory framework that advisors should vigorously support. However, the threats to client privacy are so pervasive that mere regulatory compliance isn’t enough.