August 21, 2023 / by Don Connelly / Managing the Relationship / 0 comments
Most financial advisors consciously try to do the right thing always. However, most people are sometimes prone to error, which is only human. The reality is that advisors, through no fault of their own, sometimes find themselves in situations where conflicts between ethical principles, client interests, and regulatory requirements can create ethical dilemmas.
The challenge for advisors is that they have to overcome a huge trust deficit with clients and prospects. To earn and keep their trust, they must constantly be hyper-aware of their actions and how they may be perceived, whether an ethical breach is intentional or not. That requires having a conscious and deliberate strategy to resolve any potential conflict.
Here are the most common ethical dilemmas faced by financial advisors.
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For the Sake of Time, Learning to Say “No” Is a Vital Skill Advisors Must Master
March 11, 2024 / by Don Connelly / Best Practices / 0 comments
Being able to maximize time to spend on high-payoff activities has long been a significant challenge for financial advisors who must wear many hats on their path to success. Advisors not in control of their time typically have less of it to spend interacting with clients and prospecting for new clients and other activities essential to the growth of their practice.
To gain more control of their time, advisors can follow these steps:
– Setting clear goals,
– prioritizing and planning tasks and activities,
– delegating and outsourcing administrative tasks,
– utilizing technology to automate repetitive tasks where possible,
– blocking time and batching similar tasks together,
– creating a focused work environment to limit distractions and
– learning to say “no.”
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5 Scenarios When Advisors Should Fire Clients with Conflict of Interest
December 11, 2023 / by Don Connelly / Best Practices / 0 comments
We’ve posted several times on the topic of conflicts of interest created by financial advisors when their objectivity may be compromised, and their interests are not necessarily aligned with their client’s best interests. We talked about the harm it can cause to the advisory relationship. Financial advisors caught up in ethical dilemmas, whether intentional or not, must be ready to take corrective action to save the relationship and keep the trust of their clients.
But what about when the tables are turned, and the client creates a conflict of interest or ethical dilemma? It happens more than you might think—when a client’s personal interests or values don’t align with their advisor’s. The conflict may not be egregious or illegal, but even if it just rubs you the wrong way, it might be time to cut the client loose.
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Why Mediation Skills Matter for Financial Advisor Success
September 4, 2023 / by Don Connelly / Best Practices / 0 comments
When most people think of mediation and negotiation, it typically refers to lawyers or third parties who facilitate dialogue between two or more parties to help them reach an agreement. In practice, financial advisors sometimes find themselves in the same position, having to resolve conflicts between a client’s family members or within their advisory team, where it’s essential to find win-win solutions.
Disagreements about money are common among married couples. Money conflicts are often rooted more deeply in people’s attitudes and beliefs about money, or, in some cases, money is not even the primary issue. However, in almost all cases, it involves two or more people who don’t know how to engage in productive financial conversations.
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The Significance of Ethical Practices in Maintaining Trust and Integrity
August 21, 2023 / by Don Connelly / Managing the Relationship / 0 comments
Most financial advisors consciously try to do the right thing always. However, most people are sometimes prone to error, which is only human. The reality is that advisors, through no fault of their own, sometimes find themselves in situations where conflicts between ethical principles, client interests, and regulatory requirements can create ethical dilemmas.
The challenge for advisors is that they have to overcome a huge trust deficit with clients and prospects. To earn and keep their trust, they must constantly be hyper-aware of their actions and how they may be perceived, whether an ethical breach is intentional or not. That requires having a conscious and deliberate strategy to resolve any potential conflict.
Here are the most common ethical dilemmas faced by financial advisors.
Read more