For those living under a rock, there was a big ruling last week regarding the Department of Labor’s Fiduciary Rule. You can read all about it here.
Since I’m in no way qualified to discuss the technical merits of the Fifth Circuit’s decision, you’re safe. This isn’t another article about the regulations themselves – or the possible Supreme Court showdown between the Fifth Circuit ruling and the Tenth Circuit’s opposite view of the rule.
This is about trust.
We, the financial services industry, already have a bad rap. Each year Edelman – a global marketing and communication firm steeped in helping their clients create lasting trust with their communities – studies the tides of trust in the world. And each year, for the last ten years, the financial services industry has been the LEAST trusted of the bunch. 😢
If I understand the issue correctly, the product distribution folks see a bright line between sales people and advisors. Bottom line: Sales conversations are sales conversations only, and do not contain the trust and confidence of an advisory discussion.
What? We’re selling Americans financial products, solutions and services every day. If you ask me, when it comes to money and financial security, trust is an essential part of every conversation.
This is about authenticity.
Imagine, if trust is gone, then what? Interestingly these same organizations that wish to steer clear of trust and confidence still pursue branding and marketing messages that that point toward fiduciary-ish relationships. So now we say one thing and do another? That’s not gonna work in our hyper-connected, social media-savvy Age of Authenticity; they’ll just head on over to Google for something Better(ment).
This is about opportunity.
I remember being a 401(k) sales person back in the early 2000s. (Would I be a fiduciary now?) Anywhoo…the organization I worked for was quite skeptical of ESOPs, as many organizations were/are. My thought? Run toward ESOPs! Don’t be scared. Be different. Be valuable. Be really good. And charge for it. Ditto for fiduciaries. Be different. Be valuable. Be really good. Be a fiduciary! And, charge for it.
So, Happy National Fiduciary Day! We have millions of Americans to help; we need you.