NEB Introduces Groundbreaking Errors & Omissions Insurance Program for Preferred-Risk Financial Professionals.
SAN DIEGO, CA, December 10, 2008—National Ethics Bureau members (and nonmembers with clean professional backgrounds) can purchase coverage under a new product to be issued by Continental Casualty Insurance Company (CNA) and administered by Marsh Consumer, a service of Seabury & Smith. Coverage under this product will cost up to 50% less than comparable coverage for higher risk | Continued » |
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NEB Enhances Online
Ethics Archive
SAN DIEGO, CA, September 30, 2008—The National Ethics Bureau (NEB) has enhanced its online ethics archive by offering full text articles along with Google search capability.
The archive, located in NEB’s online newsroom, includes articles dating back to December 2004, published in magazines such as Senior Market Advisor, Boomer Market Advisor | 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 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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Protecting the NEB Brand: Our Process for Resolving Member Complaints |
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The National Ethics Bureau brand is a powerful resource for communicating your integrity. However, the value of our brand is only worth what others think about it. If someone has a complaint about an existing NEB member, it must be resolved as soon as possible to protect NEB’s reputation (and value to its members).
To that end, it’s important for all members to know that NEB is committed to resolving all complaints in a timely, fair, and transparent manner. Second, we follow a systematic process for resolving every complaint. Here’s how the process works:
- A complaint may be filed against any NEB member by filling out a complaint form on NEB’s website or by calling the NEB Member Services at (800) 282-1831.
- NEB immediately sends an acknowledgment letter to the complainant and notifies the NEB member by telephone about the nature of the complaint. | Continued »
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Counsel Clients to Be Careful with 401(k)
Debit Cards |
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As the economic downturn continues, clients who are retirement plan rich, but cash poor, will more frequently use 401(k) debit cards to pay for bills they can’t quite manage with regular income. But as with all credit options, clients who misuse these cards may be asking for trouble.
According to the Securities and Exchange Commission, 401(k) debit cards let consumers borrow up to $50,000 or 50% of the value of their retirement plan with a convenient debit card. But many consumers forget that like a traditional credit card balance, 401(k) loans must be paid back . . . with interest.
Here are some tips to share with clients who are considering such cards:
- 401(k) debit cards aren’t free. They will have to pay interest and may incur fees.
- Loan repayment is on a prescribed schedule (in five years or less and without missing three consecutive payments). If they fall behind, clients must pay taxes on the entire loan balance and a 10% penalty if they’re younger than 59 1/2.
- The amount borrowed will earn a lower rate of return than the unborrowed portion of their plan. | 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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Managing Ethical Dilemmas in Tough Times
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Everywhere you look today, people are being squeezed economically. As costs mount, traditional sources of cash have dried up. Home values have plummeted, so there’s less home equity to draw on. Personal and business loans |
have become harder to get. And as the economy has weakened, jobs have gotten tougher to find.
These trends hit Americans squarely in their financial solar plexus. As their cash flow constricts, they may consider risky financial options. They may push for speculative investments in order to generate emergency cash. Cancel their life insurance to get at their cash values, leaving their children unprotected should they die. Pull money out of their annuities even though it triggers a taxable event, surrender penalty, or both.
Then competing advisors may convince your clients that they have the answer, convincing them to defect. This hits your cash flow right where it hurts.
Now, clients have the right to make their own decisions. But as a financial professional, you have an ethical duty to encourage reasonable decisions, not those that produce financial ruin in the long term. But what happens when your definition of “reasonable” conflicts with the client’s? Therein lies your ethical | Continued » |
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In Tough Times,
It Pays to Be
an
NEB Member |
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Now more than ever, being an NEB member makes a lot of sense. Here are just a few ways NEB membership can help you through tough times:
- Shortens your sales cycle by helping prospects understand your commitment to integrity and transparency.
- Gives you a competitive edge against advisors who have not passed a comprehensive | Continued »
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Contact us: Phone: (800) 282-1831 | www.ethicscheck.com
Copyright © National Ethics Bureau Inc. 2008. All Rights Reserved.  |
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