Statement
Newtown Square, PA - The leadership of the
Society of Financial Service Professionals (FSP) is deeply disturbed by news
stories such as Dateline NBC ’s recent
piece on equity-indexed annuities (“Tricks of the Trade,” airdate 4/13/08.)
It is unfortunate that the actions of an unscrupulous few can cast an unfavorable
shadow on an entire profession. Their actions fly in the face of everything
FSP has stood for over the past 80 years—in particular, the right of the
American public to ethical, competent financial service counsel.
FSP leadership
was also concerned to see equity-indexed annuities—which
under the right circumstances, and for the right client, can be an appropriate
investment—characterized as “bad.” Any product
recommended out of greed or self-interest, rather than as the result of
an analysis of the specific needs of a specific client, is “bad.” But
in actuality, the fault lies not with the product but with the tactics
used to sell it.
The best interests of the client are at the heart of the
FSP Code of Professional Responsibility—which dates back to 1961, long
before “ethics” became fashionable. Every
member of the Society—whether he or she is a banker, life insurance agent,
accountant, lawyer, financial planner, or other financial service professional—is
bound by the tenets of this Code.
We encourage all Americans to be wary
of promises that seem too good be true and, when seeking counsel, to look
for a credentialed advisor who is bound by a code of professional ethics,
as are all members of the Society of FSP.
Founded in 1928, the Society of Financial Service Professionals is the standard bearer for excellence in professionalism, advanced continuing education, and ethical guidance for the nation's top financial advisers. The Society has approximately 17,000 members, each of whom holds one or more of the following recognized financial service credentials: CASL®, CEBS®, CFA®, CFP®, ChFC®, CLF®, CLU®, CPA, CPC, CTFA, EA, JD, MSFS, MSM, REBC®, RHU®, Graduate Degrees in Financial Services. Active in 170 Chapters nationwide, Society members assist the public in their efforts to achieve personal and business-related financial goals. Consumers can obtain free financial information or find a Society member in their community by calling the Society's toll-free National Consumer Referral Service at 1-888-243-2258 or visiting www.financialpro.org.
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