Keep your clients safe in 2016
it’s A risky world for financial-services clients especially those of
post-retirement age. According to the federal trade Commission, people
60 years and older accounted for 26 percent of all fraud complaints in
2012, the highest of any age group. That was more than double the
percentage of just four years earlier. what’s more, one out of five
Americans has been the target of financial abuse, according to an
investor Protection trust survey. so what should financial advisors
do about it? get even more serious about their consumer-education
responsibilities, says the national ethics Association.
Advisors are already active in financial education by conducting
thousands of public seminars every year. Although the thrust of such
programs is educating people about planning for retirement and other
financial goals, hopefully setting the stage for them to buy a related
financial product or service, advisors should also consider getting more
involved in helping their clients stay safe in the marketplace.
Although regulators such as finrA and the seC have programs
designed to protect senior clients, advisors are the point of the spear
when it comes to financial education. A case in point: every year the
north American securities Administrators Association (nAsAA) develops
a list of the top threats facing investors. nAsAA no doubt publicizes
these threats, and countless seniors benefit from learning about them.
But hearing these warnings directly from their financial professionals
would have an even greater impact, says the national ethics Association.
to that end, ne A recommends all advisors review nAsAA’s 2016 list
of dangerous products/services with their clients — either in-person,
during their seminars or in their practice newsletters. The threats to
cover, explained more fully here, are:
unregistered products/unlicensed sales representatives
real estate and related investments
discussing these items will not only protect clients, but it will also
make for stronger, more positive customer relationships that will help
ward off future complaints and errors-and-omissions insurance claims.
red fl Ag reminder
BY NATIONAL ETHICS ASSOCIATION