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.

Bulletproof Practice, Part Three: What’s in Your Product/Sponsor Files

Posted by: EOForLess on May 31, 2016

Today more than ever, financial advisors are required to demonstrate the basis for their investment analysis, recommendations, and transactions. Without a systematic method for documenting and storing your work, you will be at the mercy of overzealous regulators and unscrupulous litigators. In fact, it’s not enough to have files; they must be complete and demonstrate […]

Advisor Alert: Help Coming to Prevent Senior Financial Abuse

Posted by: EOForLess on May 26, 2016

Financial advisors who have noticed cognitive declines in older clients, as well as irregularities in their financial statements, face tough decisions. Should they raise a red flag with authorities and risk angering family members? And should they slow or stop a requested financial transaction when they suspect exploitation? A recent survey conducted by The American […]

E&O On the Fly, Part 2: What You Must Know about Exclusions

Posted by: EOForLess on May 17, 2016

As a financial advisor, you probably know a great deal about insurance. Consequently, you understand why life and health insurers must exclude certain losses in order to preserve company solvency. But what about the E&O insurance you buy for your firm? Do you know what your policy covers exactly and what it doesn’t? In a […]

Advisor Checklist: Are Your Business Ethics in Order?

Posted by: EOForLess on May 10, 2016

If you are a financial professional or business owner, you can’t outsource ethics. You alone are responsible for your ethical conduct. Whether you own a business or just work for one, these principles will help you avoid customer complaints, legal sanctions, and E&O insurance claims. Communicate your ethical values to your employees or colleagues.   […]

Dazzle Your Customers: Seven Golden Customer Service Principles

Posted by: EOForLess on May 5, 2016

“Do unto others as you would like others to do unto you.” The so-called Golden Rule has guided human conduct since time immemorial. It was known in the Middle Kingdom of ancient Egypt (ca: 2000 B.C.), in Babylon, as expressed in the Code of Hammurabi, and in ancient Greece. It also appears in one form […]

E&O, No: How to Ease the Pain of Client Disputes

Posted by: EOForLess on May 3, 2016

FINRA statistics reveal that 2,135 customers filed arbitration claims against securities brokers in 2015. FINRA also says that arbitration cases typically take about 14 months to resolve, with advisors liable for damages about 40 percent of the time. Now, does the prospect of worrying about a client dispute for 14 months, dealing with attorneys, having […]

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 […]

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