Solving the Unethical Advisor Dilemma: Higher Standards for Education Credentials Needed

The debate is on for our July poll, with respondents split down the middle on whether or not more regulation is required to protect consumers from unethical tax and financial advisors. Many commenters agree that unscrupulous practices are an issue, but what’s the answer? Some believe the solution lies in higher educational standards. Share your thoughts!

To date, 164 votes have led to a percentage split of 55.49 (91 votes) to 44.51 (73 votes), with more answers rejecting the idea of increased regulation. An interesting turn of events considering the recent Canadian Securities Administrators’ (CSA) unveiling of their proposed reformed guidelines for embedded commissions, as well as for the Know Your Client (KYC) and Know Your Product (KYP) protocols.

Here’s what our readers have said so far:

Liz Swark offers a better solution: “Not more regulation, but more education in these matters would help.”

James Finlay agrees: “It’s not regulation that we require but a professional body of tax preparers recognized by the federal government. There is probably more than enough people who have taken tax courses (like those offered by KB) to form such a professional association.”

Karl Hillyard encourages harsher consequences: “In a word, no. Yes, there are bad characters out there. However, more regulation doesn’t stop them and just makes life harder for the honest advisors AND their clients. Here’s a novel thought: throw the book at people who have abused their position of trust.”

Do you agree that higher standards for education and credentials could be a valuable solution to the unethical advisor dilemma? The poll will be open until Knowledge Bureau returns from summer vacation on Tuesday August 7. Give it some thought and tell us what you think!

Additional educational resources:

1. Knowledge Bureau’s Real Wealth Management Strategy can help you hone in on your clients’ needs and offer more value in your service offerings. Enroll in the designation program or start with a free trial of Elements of Real Wealth Management.
2. This year’s Distinguished Advisor Conference and newly introduced Executive Business Builder Retreat feature 32 outstanding speakers on the agenda, all of whom will help you step up your leadership skills and expand on your client-focused service offerings. Early-bird registration ends September 15!

COPYRIGHT OWNED BY KNOWLEDGE BUREAU INC., 2018.
UNAUTHORIZED REPRODUCTION, IN WHOLE OR IN PART, IS PROHIBITED.

Refer a Friend	Research	Calculators	Course Trials