NEB Issues Ethical Reminders to Financial Professionals

The recent expose of NBC's Dateline on annuity sales practices gives financial professionals a golden opportunity to turn a bad report into a strengthened relationship with their customers: they can reaffirm their commitment to ethical business practices and implement those practices with their clients, says the National Ethics Bureau (NEB).

While many in the insurance industry viewed the report as shoddy journalism, consumers who watched the program might take what they saw at face value. Thus, NEB encourages advisors to recommit to serving their clients with high levels of integrity, especially in the areas of suitability and disclosure.

NEB, whose membership consists of financial professionals who have passed a series of background checks and agree to uphold the organization's principles, issued the following reminders to everyone in the profession:

1. Don't just give lip service to full disclosure. Always fully explain interest rates; if, when, and how they might change; and all fees consumers must pay in connection with their financial product.

2. Don't misrepresent any fact in an effort to persuade consumers to buy a financial product or service.

3. Don't use fear as a sales tactic. Rather, provide objective information clients can use to clarify their goals and to address their actual financial needs and concerns.

4. Don't use dubious or unaccredited industry designations. Instead, make sure a designation adds legitimate value to your business and to your clients.

5. Don't claim that you've written an article or book that you haven't written or personally collaborated on. It's okay to use third-party content to support your marketing effort as long as it is identified as such.