NEB’s Kopitz Shows the Power of Good Ethics at Selling to Seniors Conference.

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St. Louis, MO, November 17, 2006—Jeffrey S. Kopitz, president, National Ethics Bureau, showed advisors how to use trust and credibility for sales success during his presentation at the Selling to Seniors conference in St. Louis, Missouri. The conference was sponsored by Life Insurance Selling magazine.

Kopitz began by reviewing current conditions that are creating client uncertainty. These include world events such as wars and terrorist attacks and business events such as corporate bankruptcies, “creative” accounting, and mutual fund scandals. He went on to describe a “perfect storm” of unethical practices and con artists who are “preying upon the desperate and vulnerable.”

Kopitz then reviewed five “bad apples”—financial advisors who stole millions of client dollars, all within 20 miles of the National Ethics Bureau’s headquarters in San Diego, California. He also identified five commonly broken laws that consumers—and advisors—should be aware of. These include fraud (backdating, forgery, misstating age), misrepresentation (false or misleading statements), unsuitable investments (inappropriate recommendations), illegal replacements (improper 1035 exchanges), and misrepresentation by omission (failing to give relevant information).

These problems have led to increasing regulatory scrutiny, Kopitz said, including more compliance requirements for insurance agents, more requirements for securities brokers, and an onslaught of investigations and regulatory actions.

Despite these problems, Kopitz remains upbeat about the opportunities available to insurance and financial advisors, which are being fueled by:

1. Massive wealth transferring from veterans to boomers.
2. Huge consumer demand for retirement income planning services.
3. Increasing awareness about long-term care issues.
4. Increasing complexity of financial products, creating demand for clear advice.

But to capitalize on these opportunities, advisors must commit to the power of good ethics in their businesses, Kopitz urged. This involves striving to establish trust, to provide honest information at all times, and to focus on client satisfaction.

A key activity for building trust is highlighting one’s credentials using a well-designed professional profile, Kopitz said. As an example, he pointed to the online profile National Ethics Bureau members are eligible to create and save on the NEB web site.

Honesty demands being transparent about one’s education, business history, and professional designation; about potential investment returns from recommended products; and about the positive and negative features of any products offered, Kopitz said.

Client satisfaction hinges on how well one recognizes and responds to generational differences, how well an advisor protects clients from financial harm, and how well one communicates with clients over time.

Kopitz ended his presentation by encouraging advisors to take a stand on the side of ethics. Why? “Because people do business with people they trust,” he said.

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