Selling Truth as a Differentiator

Home
>
Ethics
>
Selling Truth as a Differentiator

Selling Truth as a Differentiator

The last few years have been a period of heightened scrutiny and scandal for the financial services industry. Most recently, the SEC issued a report on pension consultants regarding conflicts of interest and the objectivity of advice given to retirement plan sponsors. It's become vital to the success of insurance and financial advisors that they differentiate themselves with their exemplary ethics, that they operate by a higher moral code and that they communicate that higher standard to their clients. Why? Because research proves that ethics builds trust, and trust sells - in the long-term and - in the short-term, as well.

Taken from the SEC report and the information provided by the Dept of Labor, below are Affirmations of Ethical Behavior for Financial and Insurance Industry Representatives. The Ten Affirmations of Ethical Behavior

1. If registered with the SEC or a state securities regulator as an investment adviser I will provide my clients with all the disclosures required under those laws (including Part II of Form ADY).

2. I will describe any relationship I have with money managers that I recommend, consider for recommendation, or otherwise mention to the plan.

3. I will describe any payments I receive from money managers I recommend, consider for recommendation, or otherwise mention to the plan for consideration.

4. I have prepared policies and procedures to address conflicts of interest or to prevent conflicting payments or relationships from being a factor when providing advice to my clients.

5. I will monitor and reconcile the amount of commissions paid when using brokerage commissions to pay consulting fees and alert plan sponsors when consulting fees have been paid in full.

6. I have established procedural steps to ensure that the plan receives the best execution for its securities trades when the consulting fees are paid with the plan's brokerage commissions.

7. I will describe any arrangements with broker-dealers under which I will benefit if money managers place trades for their clients with such broker-dealers.

8. If hired, I will acknowledge in writing whether or not I have a fiduciary obligation as an investment adviser to the plan while providing consulting services.

9. I will acknowledge whether or not I consider myself a fiduciary under ERISA with respect to the recommendations I provide the plan?

10. I will describe the percentage of my plan clients that utilize money managers, investment funds, brokerage services or other service providers from whom I receive fees?

Post these affirmations on your website and include them in your marketing materials. If you complete the affirmations for prospective clients, you will have distanced yourself from the scandal ridden and differentiated yourself in an industry where the value added to products and services is quickly commoditized.

Lawrence Groves is the Director of the small business retirement administration services for the Retirement Group with the Solo 401k administration program at http://www.solo-k.com and the special 401(k) "Free for Three" ? administration program.

Lawrence comes to his clients with over 25 years as an experienced expert in plan design, administration, and compliance. Lawrence works closely with for profit, non-profit, and government agencies on 401(k), 403(b), 457, Profit Sharing, and Puerto Rican 165(e) small business plans.

Lawrence can be reached at Lawrence@solo-k.com or 727.844.7000

In The News:

ProPublica
Ethics group urges investigators to probe lobbyist involved in Owens trip
WatertownDailyTimes.com
By BRIAN AMARAL A public ethics watchdog wants federal ethics investigators to probe a lobbying firm that arranged Rep. William L. Owens's trip to Taiwan. In a letter sent Wednesday to the Office of Congressional Ethics, officials from Public Citizen ...
Owens Welcomes Ethics ProbeWWNY TV 7

all 4 news articles »

USA TODAY
Justice ethics report finds misconduct by Stevens prosecutors
Anchorage Daily News
By PETE YOST AP WASHINGTON — The Justice Department's internal ethics watchdog said Thursday that two prosecutors in the bungled corruption case against then-Sen. Ted Stevens engaged in reckless professional misconduct by failing to disclose ...
Ted Stevens Case: Justice Department Says Two Prosecutors Engaged In MisconductHuffington Post
Justice Dept. probe finds misconduct by prosecutors in Stevens trialCNN International
Justice Dep't: Misconduct by 2 in Stevens caseWBRC

all 249 news articles »

McKenna faces 2 ethics complaints over county work
The Seattle Times
A lawyer and a citizen have each filed ethics complaints against Republican gubernatorial candidate Rob McKenna. The Associated Press Note to Kyle Olive and Kimberly Christensen (and the note would be the same regardless... (May 24, 2012, by Creasy ...
McKenna faces ethics complaint over county workThe Columbian

all 22 news articles »

Man leading ethics probe of Baptist leader resigns
The Daily Advance
(AP) — The head of a group investigating the comments of Southern Baptist Convention ethics leader Richard Land has resigned. Arkansas pastor Richard Piles said he has taken over as Trustee Board chairman for the Ethics and Religious Liberty ...
Southern Baptist committee head resigns in Richard Land ethics caseThe Tennessean
Investigation re: Baptist spokesman's commentsOneNewsNow

all 67 news articles »

Board Dismisses Ethics Complaint Against Two Aldermen
Patch.com
There is no conflict of interest by members of the Common Council also serving on the Waukesha County Board of Supervisors, Ethics Board rules. By Sarah Millard Alderwoman Kathleen Cummings, sitting, listens to the Ethics Board discuss a complaint ...

and more »

BBC News
News Summary: News Corp. lobbyist testifies on UK government contacts to ...
Washington Post
ETHICS PANEL: Lobbyist Fred Michel talked Thursday to the Leveson Inquiry into media ethics that the British government created because of the hacking scandal. Copyright 2012 The Associated Press. All rights reserved. This material may not be published ...
British Inquiry Questions Murdoch LobbyistNew York Times
Adviser pulls Cameron into storm over HuntFinancial Times
British PM David Cameron appointed 'known Murdoch supporter'The Australian
Daily Beast -Huffington Post
all 1,271 news articles »

Ex-SEC Attorney Barred for 1 Year Over Stanford Ethics Lapse
BusinessWeek
Spencer Barasch, who participated in the SEC's investigation of R. Allen Stanford's $7 billion Ponzi scheme, performed private legal work for Stanford Group Co. about a year after leaving the agency even though its ethics office had told him he was ...
SEC sanctions ex-staffer who represented Stanford CoReuters
SEC Bars Former SEC Employee On Alleged Conflict Of InterestWall Street Journal

all 4 news articles »

Essex County Ethics board reprimands Keene super
Plattsburgh Press Republican
ELIZABETHTOWN — The Essex County Ethics Committee issued a decision reprimanding Keene's supervisor for using town gas. Its findings came Thursday after a six-week review, saying the committee believes Bill Ferebee's use of 14 gallons from the town ...

Ethics should guide Vanderbilt investments
The Tennessean
Thousands more participated in the movement for ethical investment by producing, showing and sharing media, and hosting dozens of teach-ins including a march on the Board of Trust in November and a teach-in with more than 50 faculty and students at the ...

and more »

Boynton expense fund is an ethics risk, county says
Sun-Sentinel
A Palm Beach County ethics officer said recently that restrictions on the reimbursement funds are ambiguous and elected officials don't have to report how they spend it. And while nothing requires them to return extra money, keeping it would be a ...

and more »

Google News