The Wealth Channel

Too Many Designations!

2005-08-15T15:46:00.000-04:00

We agree- period…there are too many designations serving the insurance and financial services industry. As of today there are over 80 designations in this alphabet soup, many from excellent sponsoring organizations. A few of them- the CLU ® ChFC ® CASL ® and others are from accredited, non-profit colleges with real faculty, rigorous tests and a mighty certification program to remove bad apples if and when there are ever questions regarding client improprieties.

For clients, the maze of designations has to be staggering, and this is one of the prime reasons why some entrepreneurs have decided to cash in on the unregulated process by starting educational programs that last from two to three days—advisors walk in, hear presentations, take a test or two, and walk out “certified” in one aspect of financial planning or another. Worse yet, some of these groups then create “Societies” of graduates (yes, you pay annual dues) to perpetuate the myth of continued education. This absurd practice diminishes the professionalism of the industry as envisioned by Dr. Solomon S. Huebner, founder of The American College, and it is a disservice to the hundreds of thousands of talented women and men who worked hard to become a CFP ®, RHU, LUTCF or CLU, just to name a few.

Isn’t the industry just handing ammunition to the likes of Elliott Spitzer when no one complains about this practice? Why would companies reimburse such introductory programs and acknowledge these producers at meetings, or on business cards? And what will it take—is it a class action suit against these “experts” who attended a hotel program—to bring sanity back to the discussion?

Many of the designations in the insurance and financial services space are excellent ones; they cue up subjects in an introductory manner and can be a springboard to further education and training. Many are administered by talented, credentialed individuals. However, some appear to be efforts to generate revenue for spirited entrepreneurs. Your thoughts?

Ethics? What Ethics?

2005-06-15T15:44:00.000-04:00

In no less than a dozen recent radio, television and newspaper interviews I have been asked about the seemingless endless stream of ethics violations that have impaired wonderful organizations. My response has been that the vast majority of professionals working in the banking, securities and insurance sectors are extraordinarily honest, focused on their clients and who take their fiduciary responsibilities very seriously. However, we must recognize that the fish, truly, smells from the head, and that the loss of confidence in CEO's and senior management is profound. It provides ammunition to the Attorney Generals and comfort to the Suze Orman's of the world. Concurrently, these headlines allow consumers to think twice about investments and insurance because they link those involved with malfeasance with otherwise honorable organizations-unfair though that may be, it's real. The industry suffers as a result.

The American College is the fountain of knowledge for your industry. Dr. Huebner didn't just talk about ethics 80 years ago, he embedded ethics into his analysis of prospecting and sales. No other business institution has done more, created more knowledge or been as consistently dedicated to ethics education as this one. Ethics is a "nice" thing to do, for sure, but how can we get all organizations, MDRT, NAIFA, GAMA- all of our credible organizations that serve the industry-to embrace a national call for ethics education? I'd welcome your thoughts.

Commission Disclosure

2005-06-15T15:35:00.000-04:00

It's coming: just watch. Efforts are underway to create one or more models of commission disclosure for a wide variety of products ranging from annuities to life insurance. What's fair? What's reasonable? Please share your thoughts and let's chat it out!