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.

Protect Your E&O Insurance Record: Get Serious NOW about Cybersecurity

Posted by: EOForLess on June 28, 2016

It’s a rare day when consumers don’t read about another cybersecurity breach afflicting a U.S. business. For example, last year Anthem, a large health insurer, announced that hackers stole sensitive personal information from 80 million of its customers. Not surprisingly, consumers are on edge about future attacks, as are financial-services regulators. In fact, the North […]

Bulletproof Practice, Part 4: What’s in Your Due Diligence Files?

Posted by: EOForLess on June 24, 2016

The due diligence requirements of the financial-services industry have become dynamic. Our objective is not to make you an expert; your expertise is in client management. Rather, our objective is to give you the tools to build a defensible position. Documentation is the key to your defense. Having an organized set of files with your […]

Top Ten Real Estate E&O Claims, Part 2: Breach of Contract and Negligence

Posted by: EOForLess on June 23, 2016

This article continues with the third and fourth most common real estate E&O insurance claims: breach of contract and negligence. The first and second most common types are here. Breach of Contract We regularly encounter lawsuits wherein one party, usually the plaintiff, asserts a breach of contract claim against the insured real estate agent. Breach […]

Watch Yourself! Five Ethical Considerations in Selling Disability Insurance

Posted by: EOForLess on June 15, 2016

May is Disability Insurance Awareness Month (DIAM), which . . . is intended to raise awareness among consumers about the need to protect their income in the event they suffer a disabling injury or illness and can’t work. But with such a small percentage of insurance agents actively promoting the need for and power of […]

Yin/Yang Winners: How Top Advisors Balance Ethics and Compliance for Ultimate Success

Posted by: EOForLess on June 9, 2016

Attaining success in financial services depends on performing at your best—at your optimal level—in every facet of your business.  Sadly, too many advisors offer less than their best, perhaps succumbing to America’s pleasure-and-consumption driven culture. The temptation to settle also is evident in how advisors handle ethics and compliance issues on the job. We often […]

Advisor Alert: FINRA Suitability Enforcement Roars Back

Posted by: EOForLess on June 7, 2016

Suitability enforcement roared back last year, according to Washington D.C. law firm Sutherland Asbill & Brennan LLP. Its annual survey of FINRA enforcement actions reported 76 suitability cases in 2015, resulting in $18.3 million in fines. In addition to significant fines, FINRA also imposed $28 million in restitution, a 1,117% increase from the $2.3 million […]

Principled Selling: To Sprint Ahead, Stand for Ethics

Posted by: EOForLess on June 2, 2016

We’ve said it before, but we’ll say it again. The vast majority of ethical/legal problems advisors encounter are self-inflicted. Sophisticated, large Ponzi schemers are outliers. Much more common are advisors who a.) make unforced errors through inattention or sloppiness or b.) aren’t well grounded in principle. In the second category are those who just don’t […]

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 […]