EO Headquarters

Our E&O HQ provides insight, guidance, and resources enabling ethical business practices and claim avoidance. Stay on top of the latest news, trends, & compliance at our E&O Headquarters sponsored by National Ethics Association. For more resources visit our sponsor’s Consumer Hub & Ethics Center pages.

Fiduciary Impact in a Nutshell: Will YOUR Sales Channel Crack?

Posted by: EOForLess on April 29, 2016

It will be years before the full impact of the Department of Labor’s new Fiduciary Rule is known. But it will begin affecting distinct sales channels in various ways, says Cyril Tuohy on InsuranceNewsNet.com. Here’s his analysis in a nutshell. Robo-advisors: The Conflict of Interest prohibition should have a largely positive impact on automated investment […]

Advisor Alert: Ready or Not, Here Comes More Transparency

Posted by: EOForLess on April 26, 2016

Giving consumers the ability to check out securities brokers before doing business has been a long-time priority of the Financial Industry Regulatory Authority (FINRA) and its predecessor organization, the National Association of Securities Dealers (NASD).  That goal received a boost recently when the Securities and Exchange Commission (SEC) approved FINRA’s revised BrokerCheck Link rule. Effective […]

Moral Courage: The Key to Extinguishing Deceptive Seminars and Designations, Part 2

Posted by: EOForLess on April 20, 2016

Several months ago, an agent approached us with an ethical concern. Formerly affiliated with a large FMO, he claimed its advisors were telling seminar attendees to expect a 4% to 6% return on their annuity purchases, despite the typical 2% payout with competing products. What’s more, he alleged the FMO was benchmarking its annuity contracts’ […]

Financial Advisors and the DOL Fiduciary Rule: Three Things to Do NOW

Posted by: EOForLess on April 11, 2016

Financial advisors have watched warily as the Department of Labor’s new Fiduciary Standard worked its way through the regulatory maze. They’ve either assumed industry lobbyists would water it down or Congress would block it permanently. When neither of those things happened, many advisors have remained mired in fear and paralysis. Observers suggest this is not […]

Read Them and Weep: Latest Entries in Insurance Hall of Shame

Posted by: EOForLess on April 7, 2016

“The ‘No-Class’ of 2015 reveals the most brazen, vicious or klutzy insurance swindlers — America’s newest pharaohs of fraud,” the coalition said in an announcement of the latest inductees into the Insurance Fraud Hall of Shame. “These barons of bleak reveal the human face of insurance fraud,” the coalition went on to say. “Victims can […]

The Case of Expanding Fiduciary Liability: Why Your Insurance License Might Not Protect You

Posted by: EOForLess on April 5, 2016

With the clock ticking on the U.S. Department of Labor’s proposed fiduciary standard, financial professionals have become increasingly nervous about the rule’s impact on their business models and revenues. But advisors who hold only insurance licenses and who don’t pursue 401(k) rollover business may think the impending storm will leave them largely unaffected. Think again. […]

Fiduciary Fallout: How to Mitigate Potential E&O Premium Hikes

Posted by: EOForLess on March 31, 2016

Industry observers are predicting E&O insurance premium increases once the U.S. Department of Labor’s fiduciary standard hits the streets later in 2016. While it’s still too early to know the actual impact on E&O insurance premiums, financial advisors should prepare  to mitigate their risks to reduce the likelihood of a broad E&O price rise. And […]

Human Advisors vs. Robo-Advisors: Will Ethics Trump Compliance?

Posted by: EOForLess on March 24, 2016

For decades, advisors have violated regulations and laws in order to further their own interests. Insurance and securities firms now spend hundreds of millions of dollars on producer recruitment, selection, training, and compliance oversight. Yet every year, the violations keep coming, and clients, especially seniors, keep getting hurt. The obvious takeaway: humans are morally fragile […]

Financial Advisors Behaving Badly: Turning Lemons into Lemonade

Posted by: EOForLess on March 22, 2016

Nearly 8 percent of securities-licensed financial advisors have engaged in misconduct over the past ten years. That’s according to three U.S. business-school professors who released their findings in a new study entitled, The Market for Financial Advisor Misconduct. If you’re an experienced financial professional, you might ask, “What else is new?” But consumers looking to […]

Social Security Planning: The Ethical Case

Posted by: EOForLess on March 22, 2016

Would you let a person teeter on the edge of a cliff without pulling him back to safety? Or what about letting a child walk on a lake’s thin ice without shouting a warning and going to her rescue? In both cases, we're sure you’d get involved, because it‘s the right thing—the ethical thing—to do. […]