Does Compensation Skew Advice?
Is your business prepared if the U.S. Government were to begin actively regulating from that perspective?
A Dow Jones article, just released through Financial Advisor Magazine, stating that Proposed Reforms Stir Debate, is yet another "wake up call" for financial advisors to ensure they are providing value and advice to their clients in such a way that they always operate in the clients' best interests.
According to the March 2nd Dow Jones article,
- "If the U.S. Labor Department has its way, the rules governing who can give Americans investment advice about their (retirement accounts), and how that advice gets delivered and paid for, soon will change."
- "The Obama administration's aim is to eliminate the problem of advisors with hidden conflicts of interest giving slanted advice to unsuspecting retirement savers."
- "If investment advisors get a commission or other compensation for steering workers into investment options with high fees and expenses, they face conflicts of interest that can undermine the reliability of their advice."
Financial advisors who are focused upon offering conflict-free comprehensive financial services have nothing to fear. The Trusted Advisor Toolkit™ is focused upon supporting financial advisors who are seeking to deliver even more comprehensive financial services to their Ideal Clients through a Best-in-Class Deliverables Team of Subject Matter Experts. These financial advisors who have fully committed to comprehensive financial services delivered in such a way that their clients observe and understand-well that their best interests are always being served by their Trusted Advisor will emerge from these debates with commanding authority within their communities. They are the type of conflict-free financial advisors these debates always endorse.
Also in the article, hear how a fearless financial advisor responded to these newly proposed regulations,
- ...If you look at the broad intent, the Labor Department is effectively recognizing a fiduciary standard and that only non-conflicted advice is in the best interests of (investors), as opposed to a less rigorous 'suitability' standard, which is a ... potentially biased or conflict-of-interest ridden standard.
Regardless of what happens with new regulatory rules, ensure you are "light years" ahead of a financial services industry, which is in many ways "in denial," by renewing your commitment to continue down the path of delivering conflict-free comprehensive financial services to your clients. Dedicate the remainder of your career as a financial advisor to this goal and you will be among the financial advisors these debates are continually advocating to your potential clients.
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