Fiduciary proposal a marketing godsend
Newspaper and television have been talking about the Department of Labor’s pending proposal of a new standard of fiduciary duty for anyone giving retirement advice. The proposed new regulations have many advisors shaking in their boots.
They fear a big disruption in their business plans, costing them sizably less revenue. No longer will they be able to specialize in high commission products that are merely “suitable” for prospects. If there is a suitable product or plan that is better ( i.e.offers lower commissions) for the prospect, the advisor is legally bound to propose it.
This is the fiduciary standard statute that they fear. They are sadly shortsighted. As management specialist Ian R. Whiting so wisely wrote to me recently,
“I am seeing fear in the eyes of the greatest percentage of advisors to these issues —they fear compliance and increased scrutiny rather than welcoming it and turning this to our advantage — it isn’t a detriment nor should they hide from it — it is helping me and the advisors with whom I am associated who choose to turn the telescope around!”
Human nature being what it is most advisors are stuck in their mindset and will not change.
But there are certain advisors who should be celebrating the recent attention the media is giving the fiduciary issue.
If you are an advisor who already embraces the fiduciary standard, now is the time to tout that you have been meeting this higher standard for years. Savvy investors have known about the standard all along, and are acutely aware of the conflict of interest it seeks to solve. Their awareness is now in the forefront of their minds.
They have greater appreciation for you and will tend to be more loyal and more likely to make referrals. You have become more referable.
You need to design advertising campaigns highlighting your superior fiduciary status. You truly have a huge competitive advantage over competitors who lack the fiduciary standard.
You must not delay. Do it now while the media is focusing on this. As you well know, the media can drop a topic in a heartbeat whenever they feel it is no longer news.
As a fiduciary compliant advisor, you should piggyback on this media story while there is still a pig to ride.
Results coach for financial professionals
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