Ethics Matter
“I want to think about it.” Most advisors agree that this common objection is really a smoke screen for a more deep-seated concern or worse yet, an underlying fear. In today’s world, “I want to think about it” often means “How do I know that I can really trust you?” Here’s why:
- Fraud has become so common that AARP issued the following warning to their 21 million senior subscribers: “Americans age 50 and over are by far the leading group of investment fraud victims…” and that the last five years have been the ‘worst ever’ for investment scams.”
- August 2004 Consumer Reports warned their vast readership that “investment frauds perpetrated by insurance agents have been responsible for the disappearance of billions of dollars from people’s retirement plans…” and that ‘con artists are offering insurance agents 30 percent and 40 percent commissions on large investments to sell shady deals...’ The story goes on to detail fraudulent investments such as promissory notes, prime bank schemes and pay phone contracts.
- A current Times/Mirror survey found that Americans named the lack of ethics as the fourth-leading problem that faces consumers today and that the public views financial professionals as being less ethical than most other professionals, including lawyers.
It’s no secret that recently seniors have seen record-level consumer fraud, elder abuse, mutual fund scandals, corporate corruption and investment fraud. And while only a small minority of insurance agents have been involved in perpetrating fraud, financial advisors in general have been judged “guilty by association” by many. In view of this, there is an increased need for the public to know who they can trust in the financial services industry.
So the purpose of this column is to help you continue to practice and communicate good ethics and prosper – both personally and financially. Thus in 2005 and beyond, look for no-nonsense information on:
- Industry changes, trends and new regulations;
- Motivational ideas on how you can establish trust and credibility;
- Practical tools you can use in the field to communicate your exemplary ethics to consumers and ultimately earn their trust.
Remember - exemplary ethics is not a technique to be mastered, but is a quality of the heart. The degree of your integrity, both personally and professionally, is evident in many ways. It shows in how you listen, in what you say, and in your recommendations. It is manifested by the kindness and consideration that you extend to your clients. Even when you do not say or do anything, it is revealed by your manner and your facial expressions. If you truly are an ethical person, others will without fail be able to tell.
Maintaining ethics and integrity is in the best interest of every advisor in the financial services industry. Those who demonstrate a high degree of ethics are recognized as business professionals that can be trusted. When you develop a strong reputation as a person of integrity, you will enjoy greater success, not only in the long term, but (contrary to popular belief) in the short term as well. Increased sales, added referrals and a long and fulfilling career can all be yours – honest.
Published in: Senior Market Advisor Magazine - January, 2005 — SMA Website
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