National Ethics Bureau Develops Case Study That Shows Advisors the Key to Winning with Compliance
SAN DIEGO, CA, December 09, 2009—To help financial advisors play by the rules and win, the National Ethics Bureau has developed a “Compliance Playbook” that shows advisors how to avoid regulatory problems and build successful practices.
Entitled Play by the Book, NEB’s case study shows how a hypothetical advisor avoids regulatory problems by adhering to 20 | Continued » |
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The National Ethics Bureau™ (NEB) is a leading advocate for business ethics in the financial services industry. NEB promotes ethical business practices through its trade-magazine columns, conference presentations, monthly newsletter, and website content. It also maintains a membership community of background-checked advisors who have agreed to uphold its principles and membership standards.
NEB also sponsors an affordable errors-and-omissions program and state-approved ethics and compliance CE courses for licensed insurance agents and securities brokers.
For the general public, NEB provides the ability to purchase a background check on any financial professional prior to doing business.
NEB is not a financial designation, nor does it endorse any products or services offered by its members or sponsors.
For more information, visit: www.ethicscheck.com |
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Are You into Social Networking?
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Complete Our Three-Minute Survey Here.
Sites such as Facebook (400 million active users) and LinkedIn (55 million members) provide cost-effective access to more prospects than ever before. They also give you the opportunity to share information without having to “interrupt” people with e-mail blasts or cold calls. If you’re looking to build strong, real-time relationships, at a lower cost and higher efficiency, then social networking can be a powerful tool.
Having said that, many advisors have been slow to network online because they either don’t envision a return on investment or their compliance departments don’t allow it. Continued » |
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SEC Cues Up New Rules
for Ponzi Prevention |
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The Securities and Exchange Commission has proposed new rule amendments designed to better protect investors who place funds with investment advisors.
One proposed amendment would require all registered advisors with custody of client assets to undergo an annual “surprise exam” by an independent public accountant to verify that those assets actually exist. Another amendment would require investment advisors using a non-independent custodian to obtain a written report that describes the controls in place, the operating effectiveness of the controls, and the test results. An accounting firm registered with and inspected by the Public Company Accounting Oversight Board (PCAOB) must prepare the report.
The proposed measures also include more stringent reporting requirements, including informing the SEC of the identity of the public accountant, of any changes in accounting firm, and of material discrepancies uncovered in the | Continued » |
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| Rogue Advisors on Parade |
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Recent crimes and consequences in the
financial services industry.
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Turning Mistrust into Gold
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Trust in business has plummeted to a ten-year low, according to Edelman, a global PR firm. Cases in point:
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- Nearly two-thirds of informed consumers (62%) trust corporations less than they did just one year ago.
- Only 17% said they trust information from a corporate CEO.
These are lower levels of trust than those Edelman measured after the Enron fiasco, the dot-com bust, and 9/11. But it gets worse. When Edelman trained its sights on the financial services industry, it found that trust among 35 to 64-year-olds dropped by nearly half, from 69% to 36%. | Continued » |
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Good Works Get
Good Media |
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Black-hat financial professionals scam consumers, get caught and sent to jail, and get lots of media notoriety in the process. This is great for the media who are always looking for bad news to hype. It also feeds the egos of the scammers. But it’s not so good for the average financial professional—the white hats—because it diminishes the public’s trust in them. So what can you do about it? Do good works and publicize those works in the media.
First task? Define your volunteering strategy. Following the spirit of the moment is fine. But it’s better to think more systematically about your efforts. Here are some questions | Continued » |
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Member News
Bob Hall, an NEB member since 2006, was featured in the January 2010 issue of Senior Market Advisor. Owner of Asset Protection Planners, of Scottsdale, Arizona and Carlsbad, California, Hall shared his thoughts on using presentations to connect with prospects. |
Congratulations to NEB member T.J. Pool for being profiled as Senior Market Advisor’s "Ethical Advisor" for February 2010. Not only was T.J. featured in a lengthy article, his photo ran on the cover of the magazine. To read the article, go here. To nominate yourself for SMA’s "Ethical Advisor" feature, please complete our online application here.
If you have news about your business or if you’ve been published recently, please send it to hlew@ethicscheck.com. |
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Tip #4
Stick to Your Expertise
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Always stay in your area of expertise. Dabbling in products you don’t understand is an invitation to disaster. |
Brought to you by the National Ethics Bureau, sponsor of Preferred Risk E&O insurance for qualified advisors. To see how much you can save, visit www.eoforless.com.
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Contact us: Phone: (800) 282-1831 | www.ethicscheck.com
Copyright © National Ethics Bureau Inc. 2010. All Rights Reserved.  |
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