|  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 |
