 back
to Press Room
Article: Ask the expert:
annuity agents’ future after ‘free lunch’ report
9/24/07 - The question was: The Securities
& Exchange Commission recently released a report entitled,
"Protecting Senior Investors: Report of Examinations
of Securities Firms Providing 'Free Lunch' Sales Seminars."
Should annuity agents change the way they do business because
of the findings in this report?
The answer is: The SEC should be applauded
for identifying and addressing bad behavior by broker-dealers
and their registered representatives.
The SEC conducted 110 examinations from April
2006 to June 2007 and found that over half of the seminars
conducted by broker-dealer representatives used "advertising
and sales materials that may have been misleading or exaggerated
or included seemingly unwarranted claims." Moreover,
78% of the examinations resulted in the responsible B-Ds receiving
deficiency or caution letters regarding seminars conducted
by their registered representatives.
We have an environment in which many financial
advisers are finding themselves under tremendous scrutiny
(and rightfully so). Many registered representatives are about
to get their fingers slammed with the lid of the cookie jar.
It is very likely that the B-D industry overall will crack-down
hard. Many individual B-Ds may even stop seminars altogether.
This is a great opportunity for financial advisers
and agents who do business the right way. Agents and financial
advisers who play by the rules and do what is right for retirees
are going to soon find there is less competition. Seminar
attendance will go up. More people will be referred by existing
clients. And, the consumer will be better informed; as a result,
they will be better able to identify good advice when they
hear it and see it.
Good agents need only continue to do what is
right for retirees and seniors. Advisers with real financial
credentials (like the Certified Financial Planner®), who
provide real advice to people will find opportunities flowing
to them.
David D. Holland, CFP, CPA/PFS, CRP, CLU, ChFC,
RIS, CSC, CAS, CFS, MSFS
Chief Executive Officer and Personal Producer
Retiree Adviser Marketing Corporation
Woodstock, Georgia
www.retireeadviser.com |
