The Honesty Pledge to tackle misselling

Honesty Pledge – what is that? you may ask. Well, you may have heard the word “Pledge” in your school. We were made to say it every time in our assembly. I still remember the India Pledge which we used to say – India is my country ….

On the same lines, I think that Financial Advisors / Planners & insurance agents should pledge that they will put their clients’ interests ahead of their own. This is their fiduciary duty — a term so dry that your eyes may be glazing over as you read this. It is defined as “involving trust, especially with regard to the relationship between a trustee and a beneficiary”. I like to call it The Honesty Pledge.

Think about this as its super important – If all of our financial service providers were obliged to put their customers’ interests before their own profit motives (think LIC agents / estate agents), fewer consumers would have been steered into expensive ULIPS, Bad Endowment Policies, Risky loans and the many other products and services that got people in trouble in the last few years. At the least, consumers would have been spared the higher costs of some of the products they were sold. So, I have crafted this Honesty Pledge.

The Honesty Pledge or Pledge to be Ethical & work in best interest of the client.

I, the undersigned, pledge to exercise my best efforts to always act in good faith and in the best interests of my client, _______, and will act in the ethical manner. I will provide written disclosure, in advance, of any conflicts of interest, which could reasonably compromise the impartiality of my advice. Moreover, in advance, I will disclose any and all fees I will receive as a result of this transaction and I will disclose any and all fees I pay to others for referring this client transaction to me. This pledge covers all services provided.

X________________________________

Date______________________________

The Honesty Pledge of Financial Advisors / Planners

Please let me know what you think about this. 

BTW, I found a nice youtube video of the India pledge that we used to say in our school. Enjoy!

 

 

 

Disclaimer: I am not your financial planner / advisor. Also, I am not SEBI Registered Investment Adviser. I write articles to share my opinion and experiences of managing money. The information and services may contain errors, problems or other limitations so I request you to contact your Financial advisor, CA or legal advisor for professional advice before making any financial decision. All views and opinions shared here are purely individual opinions. If you have any questions or concerns regarding this post then please contact me and let me know. Also please read a full disclaimer here.

 

Posted in Financial Planning and tagged CA, financial Advisor, financial Planner.