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Wealth Professional | 28 Mar 2014, 02:17 PM Agree 0
One WP reader is suggesting more government regulation would ease the sales-first approach and improve industry professionalism.
  • Harley Lockhart CFP CLU CHFC | 31 Mar 2014, 02:27 PM Agree 0
    I question the ability of any government regulation to increase the professionalism of financial advisors. Regardless of the compensation method, the attitude of the advisor is the key to being professional.

    In BC, no company sponsorship is required to obtain a life license. It has been my experience as an independent that no company (I have contracts with 14) has provided any pressure to sell their products.

    The companies provide education on their products, how they may benefit clients and how to effectively present the information in meaningful terms to the client. Most (maybe all) companies provide conferences for top producers to encourage sales of their product. The choice to allow that incentive to impact your attitude toward sales is solely up to the advisor.

    On the other hand, I surrendered my Mutual Fund license about 7 years ago because of the pressure from my dealer to increase sales to retain the relationship. Changing dealers did not resolve the issue.

    Selling has been erroneously presented as a lowly, abusive occupation. In truth, good selling is very honorable. A good salesperson helps the customer understand what they really want and suggests a product(s) that best satisfies that desire balancing the advantages and disadvantages--no pressure; no manipulation. Remember, NOTHING happens without a sale including your acceptance (successful sale) or rejection (no sale) of these comments.
  • John K | 07 Apr 2014, 05:20 PM Agree 0
    I think Harley's answer to this article hits the mark. I have been in the business for 34 years and have felt no pressure to sell any specific product. It is very tiring listening to people trying to bash the industry and advisors.
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