 |
 |
 |
 |
 |
 |
 |
 |
 |
|
 |
|
|
|
|
|
|
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
MORE RESOURCES:
Google News |
 |
|
|
RELATED ARTICLES
Are You Selling Out Your Integrity? Integrity in business is a quality that is highly under-rated by executives these days. Many executives are so "pushed and pulled" by a not so hidden force called the "profit motive" that they often find themselves compromising something that without which they could lose all credibility and trust from those they are trying to retain business from. 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. Do Organizations Serve Us Or Do We Serve Organizations We have seen an erosion in the confidence that society has in organizational leadership and its integrity recently with the numerous accounting scandals that have become public.Clearly this has led to the demise of several large organizations. Business Ethics: The Law of Corporate Karma According to the shamanic traditions, the great mystery of being is that all things are alive and have a level of intelligence. This is because all things are a part of the Great Spirit. No Credit is Due: Bad Telemarketing Just a few minutes ago I was debating what to write about this week -- something interesting, perhaps, or maybe it was about time to give some credit to snails, I thought. Then, by some random stroke of luck, fate or writer's lightning (a term I created just now), I received a phone call from a credit card company. Business Ethics There is much talk today about ethics in business - as there should be, but there should be more than talk; there should be a high moral code for all executives who are responsible to both their customers and their shareholders.I have been the president and CEO of one publicly owned company and also was president of another that was responsible to customers who traded equities. Enron's Ultimate Victim: Ethics FROM the 'MORAL HIGH GROUND', where we imagine ourselves, the Enron fiasco should have come as no surprise. Enron is simply a quintessential example of the degradation of principles such as trust, loyalty and ethical standards. The Armaments Industry and Holy (?) Roman Emperors "The time for fixing every essential right on a legal basis is while our rulers are honest and ourselves united. From the conclusion of this war we shall be going down hill. Business Ethics: An Oxymoron? Why do I believe good PR and business ethics are inextricably linked? It comes down to definitions. Ethics is learning what is right and what is wrong and then doing the "right thing. How To Build A Business Ethics Program Recent corporate financial scandals have highlighted the importance of business ethics and legal compliance. Yet a recent National Association of Corporate Directors (NACD) survey of 280 corporate CEOs and directors found that "only one of three directors felt that they were highly effective in ensuring legal compliance". Diversity I know that diversity has been a big topic of conversation ever since the early 1990s when research supported the demographics that by the year 2000, 85% of the entering workforce would be female, African-American, Asian-American, Latino, or new immigrants. The fact that white males would be a minority entering the workplace was a wake up call for corporate America. Tales from the Corporate Frontlines: Diversity And Success, In The Workplace This article relates to the Diversity in the Workplace Competency, commonly evaluated in employee satisfaction surveys. This competency explores whether your organization provides understanding and supports interaction among diverse population groups while respecting individuals' personal values and ideas. Communicable Corporate Diseases Hurting Business Sexcess! Enron Executive goes to prison for 10 years, Martha Stewart is under house arrest, and Bill Clinton averages $150,000 per speaking engagement.It all comes down to decisions on the fly, no pun intended. The Everyday Business Ethics Crisis Or Im Mad as Hell and Not Going to Take it Anymore Breaking news may feature the Enron debacle, WorldCom activities, or accounting problems but we live our everyday business life making ethical choices that affect our employment and businesses. Consider the ethical choices made in these situations:-A restaurateur hired a firm, used the firm's ideas, benefited from them and refused to pay for the services rendered. Tales from the Corporate Frontlines: Work Ethics and the Customer This article relates to the Ethics in the Workplace competency, commonly evaluated in employee surveys. It gives examples of how employees and customers consider ethical behavior and sound values an integral part of your organization. The Collapse of Enron: Managerial Aspects Executive summaryIts revenues made up US $139($184) billion, assets equaled $62($82) billion, and the number of employees reached more than 30,000 people in 20 countries around the world.While Enron Corporation was so highly praised by the outside observers, internally it had highly decentralized financial control and decision-making structure, which made it practically impossible to get coherent and clear view on corporations' activities and operations. Better Business Boundaries To get a new client, we might be inclined to make concessions no matter what the cost: offer a second or extra long sample session; reduce fees; set session times we don't want to work. We might leap at any opportunity before looking at the possible return on investment of time. Financial Projections in Business Plans One of the most difficult sections to write in a business plan is the proforma and financial sections. After all it is most difficult to what exact costs you will incur or what level of sales volumes are actually achievable. Ethics In The Workplace Workplace Ethics is a subject that we have all heard of. In fact, the subject of Ethics in general is something that most people are familiar with. The Social Implications of Computing Directed by Mark Harrison, "Visions of Heaven and Hell" is a three-part cautionary tale come documentary commissioned by Channel Four, that warns of the impending infiltration of technology and pessimistically endeavours to communicate the sentient of an old Buddhist proverb which states "To every man is given the key to the gates of heaven; the same key opens the gates of hell." and within computerisation lies such a key thought a dismal set of apprehensive predilections.
|
|
|
 |
 |
