Selling Truth as a Differentiator

The last few years have been a period of heightened scrutiny and scandal for the financial services industry. Most recently, the SEC issued a report on pension consultants regarding conflicts of interest and the objectivity of advice given to retirement plan sponsors. It's become vital to the success of insurance and financial advisors that they differentiate themselves with their exemplary ethics, that they operate by a higher moral code and that they communicate that higher standard to their clients. Why? Because research proves that ethics builds trust, and trust sells - in the long-term and - in the short-term, as well.

Taken from the SEC report and the information provided by the Dept of Labor, below are Affirmations of Ethical Behavior for Financial and Insurance Industry Representatives. The Ten Affirmations of Ethical Behavior

1. If registered with the SEC or a state securities regulator as an investment adviser I will provide my clients with all the disclosures required under those laws (including Part II of Form ADY).

2. I will describe any relationship I have with money managers that I recommend, consider for recommendation, or otherwise mention to the plan.

3. I will describe any payments I receive from money managers I recommend, consider for recommendation, or otherwise mention to the plan for consideration.

4. I have prepared policies and procedures to address conflicts of interest or to prevent conflicting payments or relationships from being a factor when providing advice to my clients.

5. I will monitor and reconcile the amount of commissions paid when using brokerage commissions to pay consulting fees and alert plan sponsors when consulting fees have been paid in full.

6. I have established procedural steps to ensure that the plan receives the best execution for its securities trades when the consulting fees are paid with the plan's brokerage commissions.

7. I will describe any arrangements with broker-dealers under which I will benefit if money managers place trades for their clients with such broker-dealers.

8. If hired, I will acknowledge in writing whether or not I have a fiduciary obligation as an investment adviser to the plan while providing consulting services.

9. I will acknowledge whether or not I consider myself a fiduciary under ERISA with respect to the recommendations I provide the plan?

10. I will describe the percentage of my plan clients that utilize money managers, investment funds, brokerage services or other service providers from whom I receive fees?

Post these affirmations on your website and include them in your marketing materials. If you complete the affirmations for prospective clients, you will have distanced yourself from the scandal ridden and differentiated yourself in an industry where the value added to products and services is quickly commoditized.

Lawrence Groves is the Director of the small business retirement administration services for the Retirement Group with the Solo 401k administration program at http://www.solo-k.com and the special 401(k) "Free for Three" ? administration program.

Lawrence comes to his clients with over 25 years as an experienced expert in plan design, administration, and compliance. Lawrence works closely with for profit, non-profit, and government agencies on 401(k), 403(b), 457, Profit Sharing, and Puerto Rican 165(e) small business plans.

Lawrence can be reached at Lawrence@solo-k.com or 727.844.7000

---

Are You Selling Out Your Integrity?

Integrity in business is a quality that is highly under-rated... Read More

Work Ethics ? A Paradigm Shift

Work ethics is a hot topic in today's business and... Read More

Business Ethics: The Law of Corporate Karma

According to the shamanic traditions, the great mystery of being... Read More

Conflict: Not Necessarily a Bad Thing

I got yelled at tonight. Not the type of yelling... Read More

The Deception Perception: Pay No Attention to the Man Behind the Curtain

The Deception PerceptionWithout a doubt, people would rather do business... Read More

Vice of Buggery at FTC

At the Federal Trade Commission we have seen attorneys who... Read More

The Need to Survive; A Death Knell For Organizations

Changing the driving force upon which business decisions are based... Read More

Private Carrier Pepsi Embraces Diversity Amongst Employees

Many companies claim to be committed to diversity, but private... Read More

Enron?s Ultimate Victim: Ethics

FROM the 'MORAL HIGH GROUND', where we imagine ourselves, the... Read More

Tales from the Corporate Frontlines: Shifting Culture and Climate in Todays Corporate World

This articles relates to the EngagedMetrics core competency Culture and... Read More

Is Your Management Style Lead By Intimidation?

So many women make the mistake of thinking that they... Read More

Ethics in Business...A Lost Art

While watching Face the Nation one Sunday earlier this year,... Read More

The Armaments Industry and Holy (?) Roman Emperors

"The time for fixing every essential right on a legal... Read More

Minding Your Global Manners

To say that today's business environment is becoming increasingly more... Read More

Communicable Corporate Diseases Hurting Business Sexcess!

Enron Executive goes to prison for 10 years, Martha Stewart... Read More

Financial Projections in Business Plans

One of the most difficult sections to write in a... Read More

Ethics? How To Take the Measure Business

When asked to write a small piece pertaining to ethics... Read More

Selling Truth as a Differentiator

The last few years have been a period of heightened... Read More

Brain Development and Due Process

DUE PROCESSAfricans, especially Nigerians are stereotyped on the internet and... Read More

Business Ethics: An Oxymoron

An oxymoron: the juxtaposition of contradictory words or concepts. That... Read More

Business Ethics: Functional Choices

Years of experience have taught me there is no such... Read More

Business Ethics

There is much talk today about ethics in business -... Read More

How To Build A Business Ethics Program

Recent corporate financial scandals have highlighted the importance of business... Read More

The Three Schools of Business Ethics

G. Richard Shell, author of Bargaining for Advantage: Negotiation Strategies... Read More

Better Business Boundaries

To get a new client, we might be inclined to... Read More

No Credit is Due: Bad Telemarketing

Just a few minutes ago I was debating what to... Read More

Mind Your Own Damn Business Sexcess

You have certainly heard the expression "mind your own damn... Read More

Tales from the Corporate Frontlines: Diversity And Success, In The Workplace

This article relates to the Diversity in the Workplace Competency,... Read More

Top 10 Principles for Positive Business Ethics

This morning, I read about a company using on-line auctions... Read More

The Collapse of Enron: Managerial Aspects

Executive summaryIts revenues made up US $139($184) billion, assets equaled... Read More

How To Detect Liars In Your Business & Personal Life

We live in a world full of lies and deception.... Read More

Ethics In The Workplace

Workplace Ethics is a subject that we have all heard... Read More

The Social Implications of Computing

Directed by Mark Harrison, "Visions of Heaven and Hell" is... Read More