NEB President Jeffrey S. Kopitz Discloses the Benefits of Full Disclosure. |
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SAN DIEGO, CA, January 28, 2008—NEB President Jeffrey S. Kopitz recently disclosed to readers of Life Insurance Selling that full disclosure is a key strategy for building optimal client trust.
Writing in the magazine’s January 08 issue, Kopitz said that non-disclosure is just as serious a matter as misrepresentation. “If you routinely fail to provide key information to your prospects, and you do this for your own benefit, then you are in the same position as a lobster placed in a pot of lukewarm water: totally unaware of the hot water that will soon engulf you.”
In the article, Kopitz defined disclosure from an ethical perspective. “The sharing of information should be robust,” Kopitz said, “and the goal of sharing should be to help the person weigh the pluses and minuses of the recommendation and to make an informed decision.”
He also discussed how much financial professionals are legally obligated to disclose. “Assuming you comply with the minimum disclosures required by your license type,” he asked, “how much further should you go? I believe you should disclose as much as possible, especially if non-disclosure would lead a client to think you held information back for financial gain.”
Kopitz also addressed what exactly financial professionals should disclosure, how to document client disclosures, and what financial professionals stand to lose and gain from full disclosure.
Kopitz ended his article with a clarion call for full disclosure. “Perhaps the strongest case for full disclosure is the positive affect it has on one’s stress level,” he said. “ When your default position is more disclosure, not less, then ethical quandaries and self-disputes vanish and you just do what comes naturally. Plus, when your philosophy is to share fully with clients, you will experience the serenity that comes from educating the client and letting the chips fall where they may. Whether you make more or less money as a result, you still win!”
About National Ethics Bureau:
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 related services such as Preferred Risk E&O insurance and state-approved ethics and compliance continuing education 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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