TITLE

When advisors churn, clients get burned

AUTHOR(S)
McCarty, Steven
PUB. DATE
June 2013
SOURCE
Senior Market Advisor;Jun2013, Vol. 14 Issue 6, p60
SOURCE TYPE
Trade Publication
DOC. TYPE
Article
ABSTRACT
The article discusses the negative implications of churning for financial advisors. It states that while churning, or the act of selling consumers a replacement product to obtain an additional commission, is simple, it is not a right thing to do. It mentions that churning is illegal, unethical, and ruins an advisor's reputation. The author suggests that unless there is a tangible benefit to the client, advisors should never replace a product.
ACCESSION #
87978709

 

Related Articles

  • What Advisers Are Saying. Wickenden, Phil // Money Marketing;10/24/2013, p55 

    The article shares the insights of financial advisers about the importance of reputation when selecting tax rapper strategy, based on the result of a survey.

  • Policy proposals to combat churn.  // Money Management;2/23/2012, Vol. 26 Issue 6, p15 

    The article reports on the opposition of financial planners, such as RI Advice Group Pty. Ltd. national manager Col FUllagar, on the two-year responsibility period proposal by the Australia's Financial Services Council (FSC) that bans takeover terms in the country.

  • Tony Byrne: IFAs still don't pass the canape test. Byrne, Tony // Money Marketing (Online Edition);9/12/2012, p7 

    The article presents the author's views on whether the retail distribution review (RDR) will give a fair reputation to financial advisors. He says that when he introduces himself as an advisor at a social event, people prefer not to talk to him for fear of being sold to by a commission hungry...

  • Protect Your (Online) Rep. Barack, Lauren // Registered Rep Exclusive Insight;2/27/2012, p2 

    The article discusses the need for registered representatives to protect their reputation when they create an online presence. According to Big Blue Robot Chief Executive Officer (CEO) Don Sorenson, professional reputation is linked to online presence. Among the ways to protect one's reputation...

  • Expert Positioning. Bowen Jr., John J. // Financial Planning;Aug2009, Vol. 39 Issue 8, p19 

    The article considers the level of expertise as the preference of affluent investors when selecting their advisors. In a 2006 study, overall expertise was considered by 91% of high-networth investors as a significant reason for choosing their advisor, while 65.2% mentioned reputation as a key...

  • Partnering with an Appointment-Setting Firm. Pojeta, John // Advisor Today;Sep/Oct2014, Vol. 109 Issue 5, p60 

    The article offers tips for financial advisors regarding collaborating with appointment-setting firms to find new clients and grow their business. Suggestions discussed include ensuring that the appointment-setting firm will protect your business reputation, receiving business intelligence from...

  • Rogue advisers hurt the entire industry's reputation. Beaman, Lucinda // Money Management;5/27/2010, Vol. 24 Issue 18, p4 

    The article reports on the statement from Association of Financial Advisers (AFA) chief Richard Klipin regarding the need for the financial advice industry in Australia to expose bad practices which may inflict further damage to the reputation of the industry.

  • Trust: the key to ongoing relationships. Griffin, Ray // Money Management;3/16/2006, Vol. 20 Issue 9, p18 

    The article offers tips for financial planners on how to build strong relationships with clients. Trust and reputation are key business elements. Financial planners have to keep establishing trust with their clients. The most important issue for planners is to ensure that clients know the...

  • Planner reputations still in decline. Taylor, Mike // Money Management;5/9/2013, Vol. 27 Issue 17, p1 

    The article reports on the poll entitled "Roy Morgan Image of the Professions Survey," by Roy Morgan Research, which showed that financial planners' reputation remains in decline in their standings in 2012 since the Industry Super Network (ISN) moderated its television advertising.

Share

Read the Article

Courtesy of VIRGINIA BEACH PUBLIC LIBRARY AND SYSTEM

Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics