Ethics Edge - November 2007

NEB Membership Certificates Revised

The National Ethics Bureau has developed a new certificate of approval that makes a stronger impact on consumers, while eliminating language of concern to regulators. The new certificate was recently posted to all member accounts on the NEB web site.

The main differences between the new and old certificates include:

Bolder treatment of NEB’s name, to make a bigger impact on the public.
Bolder treatment of the member’s name and membership status.| Continued »

“The Future of Designations” will be unveiled in latest TrendWatch podcast, sponsored by National Ethics Bureau and ProducersWEB.com.

SAN DIEGO, CA, October 24, 2007—Financial professionals seeking guidance on using educational designations ethically will get answers by listening to “The Future of Designations,” the latest podcast in the Trendwatch series sponsored by the National Ethics Bureau and ProducersWeb.com.

The podcast is free and available for listening at TrendWatchPodcast.com.

“Designations have been a hot topic in 2007,” says Steven R. McCarty, NEB Chairman. “There have been a lot of questions about responsible use of designations, especially in the senior marketplace. This podcast will help producers understand the emerging regulatory trends and to make appropriate decisions regarding which designations to pursue.”

Scheduled for launch on October 24, 2007, the podcast will feature Dr. Larry Barton, President and CEO of The American College and Henrietta Nye, President of Keir Educational | Continued »

The National Ethics Bureau™ (NEB) is a membership organization of financial professionals who have successfully passed a comprehensive background check and have agreed to maintain NEB membership standards. All members are admitted into NEB’s national registry, which consumers can access free of charge to verify a member’s approval status.

NEB also advocates for business ethics and consumer protection through its trade-magazine columns, conference presentations, consumer guides, monthly Ethics Edge newsletter, and web site www.ethicscheck.com.

NEB is not a financial designation or marketing organization. It does not sell or endorse any financial products. Nor does it receive financial considerations from its members or other entities who sell such products.

NEW: Monthly podcast that features interviews with top industry experts on current trends in the financial Services Industry.

Click here to register...

	Caution Urged in Wake of Latest FINRA Sweeps
November 2007
FINRA—the Financial Industry Regulatory Authority—is executing two new industry “sweeps” that suggest high standards of ethics and strict compliance are more important than ever. The first sweep, announced in September 2007, is to examine whether brokers are using so-called "professional" designations to mislead and defraud investors. FINRA, along with state regulators, are concerned about the growing number of professional designations, particularly those used to suggest special expertise providing financial advice and products to seniors, but that don’t require meaningful knowledge or training. \| Continued »

	The Trust Factor Part 2: Get Naked
	Last month, we wrote that trust—or the lack of it—is on a lot of people’s minds. In addition, we urged advisors to communicate character and demonstrate competence in order to achieve breakthrough trust. Finally, we wrote that building character and competence hinges on being credible, being reliable, being honest, being personable, and having integrity.
This month, I’d like to zero in on the importance of getting naked. By this I mean being openly honest and transparent in all your business dealings. Thomas Jefferson once said, “Honesty is the first chapter in the book of wisdom.” Clearly, telling lies is a great way to have this book thrown at you. But dishonesty isn’t just about telling lies. It’s also about omitting information or spinning the truth in order to manipulate people. \| Continued »

Made in China Spells Opportunity

Like most Americans, you’re probably worried about the safety of toys, medicine, tires, food, and God knows what else made in China. No wonder. The media have been full of accounts of dangerous Chinese products that have reached our shores with little or no oversight by Chinese safety regulators.

The good news: You have an opportunity to make lemonade out of Chinese lemons. Here’s how:

Ask your prospects whether they’re concerned about buying Chinese products. If they answer “yes” (and they will), explain to them that American products and services are fortunately much better regulated. Then mention that one industry in particular has multiple layers of oversight in order to protect consumers: financial services | Continued »

	A Passion for Safety
	Larry Rubenstein doesn’t help clients get rich. He makes sure they don’t get poor. And if anything or anyone gets in his way, watch out! Problem is, boomers and seniors these days are running an obstacle course on their journey to a financially secure retirement. First, they encounter financial professionals who misrepresent their products. Rubenstein tells of one recent client whose former broker had insisted that his variable annuity was the same as a fixed annuity (not!).
Then they do business with advisors who graduated from the “oh, by the way” school of disclosure, failing to mention annuity surrender fees until after they close a sale, even with \| Continued » Become NEB's next Member of the Month! (click here)