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Referrals to Financial Advisors Welcome to the webinar that ... Referrals to Financial Advisors Welcome to the webinar that ... Presentation Transcript

  • Referrals to Financial Advisors
    • Welcome to the webinar that describes why CPAs, attorneys, and other Centers of Influence refer clients and others to financial professionals who are profiled in the Paladin Registry
    • Webinar Duration
      • Number of slides: 17
      • Viewing Time: Approximately 7 minutes
    • Jack Waymire, Narrator
      • 31 years of financial industry experience
      • Author of the best selling book “ Who’s Watching Your Money?”
      • Co-founder,
  • About Paladin
    • Paladin is an independent information services company; not a financial services company
    • The Registry is a unique source of objective information about financial advisors, planners, and firms
    • No advisor or firm has an equity interest in Paladin
    • No advisor or planner is employed by, licensed by, or affiliated with the Paladin Registry
    • Paladin is not licensed to sell any investment products
  • Paladin Research
    • Paladin has surveyed more than 4,000 consumers to obtain factual information about their range of experiences with advisors and planners
    • Paladin received input from more than 550 financial professionals about their range of experiences with consumers
    • Paladin combined the input from both sources to develop the content of this webinar
  • Client Needs & Assumptions
    • Based on extensive Paladin Research, there are four reasons why your clients and other people ask you to refer them to financial advisors and planners:
    • #1. It’s an easy way for them to find financial professionals
    • #2. They don’t know where else to go to find advisors
    • #3. They don’t have to do any work evaluating advisors
    • #4. They assume you know the best advisors because you or
    • your other clients already use their services
  • Expectations = Pressure
    • Research also shows clients have expectations when you refer them to financial professionals. They expect your referrals to:
      • Have high degrees of competence and ethics
      • Put their financial interests ahead of their own
      • Have investor-friendly business practices
      • Produce above average results
    • Client expectations can create pressure:
      • First, there is the pressure to help your clients find quality advisors
      • Then, there is the pressure to help your clients avoid the risks and consequences of bad financial advice
      • Then, there is the pressure that your clients may be negatively impacted by the advisors that you referred them to
  • Advisor Expertise
    • Unfortunately, there is no easy way to determine advisor competence. For example:
      • 90% of advisors are sales representatives (reps) who are paid commissions to sell products; they are not paid to help your clients achieve their goals
      • Advisors don’t have audited track records
      • There is a broad range in the quality of advisors
      • All sales reps claim to be ethical experts even when its not true
      • Sales reps use titles, for example planner or advisor, to help them maximize their sales of investment and insurance products
      • Reps do not provide any written documentation for their claims of financial expertise
  • Advisor Ethics
    • Advisor ethics are even more difficult to measure
    • All advisors claim to be trustworthy. Like expertise, this claim helps them sell their products and services
    • Investors should go to to view the advisors’ compliance records. However, the records don’t show:
      • Conflicts of interest
      • Advisors selling products that make them the most money
      • Advisors using titles, they have no right to use, to sell more products
      • Advisors hiding information from consumers that would interfere with their sales processes
  • Advisor Results
    • Money managers have track records because they provide the same service to multiple clients
    • Advisors do not have track records because their services vary by client
    • Advisors try to create track records by:
      • Selling hot products that they selected after the performance occurred
      • Providing references that describe the results that the advisor produced for them
      • Showing consumers sample performance reports
    • Advisor s’ past results cannot be documented
  • Just Say No
    • Refusing to provide your clients with advisor referrals is an easy solution; it’s just not the best solution
    • There are several reasons why you should help your clients find and evaluate financial advisors and planners
      • Without help, your clients will be prone to selecting bad advisors because they don’t know how to determine advisor quality
      • You want to help your clients avoid the risks and consequences of bad financial advice
      • You want to help your clients achieve their financial goals
      • You don’t want your clients going to your competitors for help
      • You may also have common clients with the advisors in the future
  • The Registry Solution
    • You can help your clients find and select quality advisors by referring them to a local, five star member of the Registry
      • Paladin screened the advisor for you
    • They can view the professional profile of this advisor
    • They can use the Registry’s educational content to learn more about advisors
    • And they can print copies of the advisor’s profile and other documents so they have a permanent record
  • Paladin Registry Facts
    • The website URL is
    • More than 700,000 consumers have used Registry services since April, 2005
    • The Registry received Kiplinger’s highest quality rating for its service category
    • CBS Marketwatch called Registry services the perfect solution for consumers who didn’t know where to find advisors and how to determine their quality
  • Registry Services
    • Information Center - Consumer education for selecting quality advisors and avoiding bad advice
    • Search Service – Matches consumers to pre-screened, five star planners and advisors
    • Documentation Service – Comprehensive information for advisor credentials, ethics, business practices, and services
    • Rate Your Advisor – A questionnaire and evaluation system for rating non-Registry advisors
  • The 90/10 Rule
    • A financial professional introduced you to the free public services in the Registry
    • The professional is a member of the Registry and an advocate for competent, ethical financial advice
    • Less than 10% of advisors who contact us have credentials, ethics, business practices, and services that meet the Registry’s high minimum standards for admittance
    • More than 90% are rejected because they don’t meet Registry standards for competence and ethics
  • Registry Professionals
    • Advisors who are profiled in the Registry have these characteristics in common:
      • They provide competent financial advice
      • They have ethical business practices
      • Their clients interests always come first
      • They are acknowledged fiduciaries
      • They are compensated with fees
      • They provide sophisticated financial services
      • They provide voluntary documentation and disclosures
      • The achievement of client goals is their number one priority
  • The Need for Documentation
    • Non-Registry advisors use sales skills and personalities to convince clients to trust them with their assets
      • Their verbal information is easy to misrepresent
      • It’s also easy to omit verbal information
      • Clients have no written record of what was said to them
      • Verbal information is easy to deny later
    • On the other hand, Registry profiled advisors provide comprehensive, written documentation for their credentials, ethics, business practices, and services
  • What’s the Cost or Catch?
    • There is no cost
      • All Registry services are free to the public
      • We have nothing to sell consumers
    • There is no catch
      • Your clients don’t have to register to use three of the four Registry services for consumers: Information Center, View Documents, and Rate Your Advisor
      • Registration is required for the search service so we can send them their results
  • Summary
    • Now you know there’s an alternative that helps you satisfy your clients’ needs for competent, ethical financial advice
    • You can refer them to the education, search, and documentation services on the Registry website
    • You will be providing a value-added service that also helps you avoid the risk of bad advisor referrals
    • Thank you!