How can I prevent complaints from arising in the first place?

Ask National Ethics Association…

Q: I’ve never received a complaint and I don’t plan to start now! How can I prevent complaints from arising in the first place?

A: We commend you for your excellent track record. But you’re right not to become complacent. Here are five ideas for preventing complaints, which also reducing your risk of having an E&O claim

1. Do everything by the book.

Make sure your marketing (especially sales seminar) practices are locked down tight. Know your administrative procedures cold, especially regarding filling out forms and dealing with client funds.

2. Do business with professionalism.

Part of this depends on you knowing your stuff. The other part depends on you acting with integrity. If you’re not sure what that means, review the National Ethics Association Integrity Pledge.

3. Meet and hopefully exceed client expectations.

You can do a great job for your clients, but if they’re expecting something more, watch out. So always be sure to set—and reset— client expectations as needed.

4. Become “the great communicator.”

Reach out to your clients frequently. Ask them how they’re feeling about their product or plan—and about you. If they’re not happy, find out why and fix the problem immediately.

5. Always do what’s best for your clients.

Never forget that it’s about them, not about you. Whatever your license type, adopt the mindset of a true fiduciary.

Brought to you by National Ethics Association, sponsor of Preferred Risk E&O insurance for qualified financial professionals.