By Suresh Sadagopan, CFP
Every financial services company talks about trust; they talk as if their client’s trust them as an infant would trust its mother. The trust that the child has on its parents is the ultimate trust. The child does not question anything. It knows that mommy dear will come running, if she as much as whimpers. She will check whether her baby is hungry or has wet her pants. Once her mom takes the baby in her cozy embrace, the infant is instantly comforted. Her mom does what is needed and the child knows that she would. That is trust – implicit trust!
Continue reading Financial Planners: With Great Authority Comes Great Responsibility
By Mark DiGiovanni, CFP
I suspect that most of the writers and readers of Financial Planet are some of the best examples of the financial planning profession. You wouldn’t spend the time on this site if you weren’t looking to make yourself a better example of what it means to be a CERTIFIED FINANCIAL PLANNER professional. That being the case, I may be preaching to the choir in this column. However, it has been my experience that the choir can send a very powerful message.
Continue reading Missionaries vs. Mercenaries
By Simon Hassan, CFP
Yes, no, and it depends.
Yes, if the fees or commissions are reasonable in relation to the value of the services they provide.
No, if the adviser (and let’s include the firm they work for here) is just ‘clipping the ticket’ – whether the ‘clip’ is taken as commission or fees. Particularly so where conflicts of interest exist (as when an adviser claims to be, or gives the impression of being independent when this is not really the case).
Continue reading Can Investment Fees From Financial Advisers Be Justified?
By Daehong Kwon, CFP
One of the features that distinguishes the CFP designation the most from the other financial professionals or financial planners is the fact that we consider ‘ethics’ the most important virtue. It is true that ethics is one of the fundamental elements for every professional in the financial community, but it is rare that ‘ethics’ is prioritized on top of the values in a licensing process as it is in the case of “4E” required in the CFP certification requirement.
Continue reading Professional Ethics and Trust
By Jaeyoung Yang, CFP
Financial planning is planning for life. It can be done without any specific license. Note, however, that the performance of financial planning is dependent upon client who wants such services. Therefore, from whom does the client want the services? What kind of certificate of qualification would they want their planner to have? And from which organizations does the client want such services?
Continue reading Financial Trust: What Clients Are Really Looking For
By Mukesh Dedhia, CFP
Trust! The word itself, gives you a sense of attachment. A belief that nothing will go wrong and even if it does then there is somebody to get you out of the trouble maze! For example, when a father throws his child up in the air, the child laughs his heart out, rather than fearing a fall. Why? Because there is a natural bond of trust between a child and parent. The child is sure, that, when it is with its’ parents, nothing can go wrong!
Continue reading Trust & Ethics: Keeping Financial Planners Honest
By Sunho Kim, CFP®
Financial consumer protection has come to the forefront of financial planning since the global financial crisis, caused by the 2008 subprime mortgage crisis. Also, the Consumer Financial Protection Bureau was newly established under FRB in the USA. Likewise, in Korea, the Financial Consumer Protection Agency is going to be established as an independent organization under the Financial Supervisory Service following the public announcement of Laws Related to Financial Consumer Protection (Nov. 2011).
Continue reading Professional Ethics Checklist
By Martin Casals Iglesias, CFP
Trust and results. Voltaire and Shakespeare have something to teach us.
Reliability and delivery of results: two concepts that are somehow the center of the relationship between a service provider and its customers. When we are talking about a profession that is still looking to establish itself and earn a reputation, these concepts become even more important.
“I would have greater confidence in the performance of a man who expects to have a great reward than in that of the one who has already received it.”
Continue reading Lessons from Literature: What Financial Planners Can Learn from Voltaire and Shakespeare