Bulletin #212 - Polish Yourself with (a) Pledge

What a difference a few years makes.The dirty stain made by consumer fraud, elder financial abuse, investment scams, corporate scandals, and “creative” accounting practices, has continued to soil the confidence of investors in the financial services industry. 
And in just the past two years, the Securities & Exchange Commission (SEC), the National Association of Securities Dealers (NASD), and various State Insurance Departments have attempted to apply their brand of polish by levying fines that total over $5 billion against tens of thousands of brokers, agents, brokerage firms, and insurance companies for ethical misconduct. 
Regulatory action and damage control measures have made countless headlines and the message is loud and clear:  the industry as a whole is demanding a shift to absolute honesty and competency from the top down.  Investors are insisting that their advisor willfully embrace a strict code of ethics – which means much more than just dutifully meeting compliance regulations.  Ethics is the adherence to principles, not the submission to a short-term rulebook.
Now its time for you to shine.  So the following is the code of ethics that all members of the National Ethics Bureau pledge to uphold, but you do not have to join our organization to embrace its ideals:

• I will be totally honest when explaining my education and business background, professional designations and years of experience in the financial services industry.
• I will be completely truthful to my clients by not exaggerating the realistic returns that they can expect from any investments or insurance product that I may recommend to them.
• I will always disclose the important features of an investment or insurance product that outlines the possible risks or any other features that may negatively affect its future performance.
• I will never let higher commissions influence my decisions in determining what is the best investment or insurance product for my clients.
• I will always determine the proper suitability of any investment or insurance product before making a specific recommendation to my clients, and I will take into account any future needs for liquidity that may arise such as inflation, taxes and nursing care.
• I will only use sales presentation material that is completely accurate and true regarding any investment or insurance product that I offer, and I will always comply with state and federally regulated advertising guidelines when using any sales presentation material, including illustrations, that may influence the buying decisions of my clients.
• I will always provide my clients with copies of all documents, whether signed or unsigned, that discloses any pertinent facts regarding any investment or insurance product that I have sold them.
• I will always refer my clients to a more specialized professional advisor such as a Certified Public Accountant (CPA), Estate Planning Attorney or a Licensed Securities Broker if their needs are beyond my areas of licensing and expertise.
• I will always follow through on any of the additional services or extra assistance that I had promised to my clients during the initial sales process, despite costs or inconvenience, even if I feel that there may be no future financial benefit to me.
• I will consistently educate myself as to the new laws and regulations in the financial services industry and I will never knowingly break those laws for any reason.

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