July 30, 2010
As a 32 year veteran of the insurance industry, I have seen compliance regulations and oversight rise exponentially. Every client has to be documented as to risk tolerance, suitability, and background (Patriot Act, financial, and other questions). Every piece of business is reviewed, suitability validations required by management and compliance, and full disclosure given. Our industry already provides the necessary consumer safeguards via the suitability standards policed by federal, state, and company compliance systems.
There is no need to apply a fiduciary standard to our profession. Isn't this the standard that Bernard Madoff,
R. Allen Stanford, and other notorious thieves were
"monitored" by? Suitability as to client best interest
monitored by ongoing reviews and systems has produced less
headlines than the fiduciary standard...everyone in the financial services industry should adhere to suitability
Here's the bottom line...crooks will be crooks no matter what regulatory "system" is applied. Give us honest reps kudos for our client-oriented work and throw the crooks in jail