You’re Too Late!

By Marc Westlake

Published on: June 20, 2023

Ethics in Irish Financial Services

We invited a good friend of Everlake’s, Dan Candura CFP, to give a keynote speech on the subject of ethics at an event for the Society of Financial Planners a few years ago.

Dan, who has been lecturing ethics in the USA for the last 40 years, flew in from Boston for the event. As he was passing through airport security he was stopped and asked the purpose of his visit.

“I’m giving an ethics lecture to Irish Financial Advisors” Dan explained. To which the DAA official replied “you’re too late”.

Ethics in Financial Services Worldwide

I’ve just returned from a conference in Cape Town and still the question of ethics and financial advice is being examined.

During numerous conversations at the event, I found it particularly interesting how few cases of market abuse and financial scandals there are in South Africa.  Despite the rolling power cuts and political corruption that has afflicted the country the moral standards of financial planners are admirably high.

In the early 1990s there was an increasing call for more transparency. South African advisers decided to turn their backs on commission payments for investments. They didn’t need a regulatory commission ban – it just happened.

Mis Selling of Financial Products

Contrast this with the current state of Financial Advice in Ireland. You don’t need to look far to find numerous examples of flagrant mis selling of unregulated products. High upfront commissions, opaque charging structures, and financial brokers who are adept at sidling around the regulations designed to protect consumers spell bad news for consumers.

I’m willing to concede that not all brokers are criminally intent on defrauding their clients. Some who sold these products are simply negligent and failed to conduct appropriate due diligence.

From the investor’s perspective the end result is much the same, with low levels of professionalism leading to bad, and in some cases, disastrous outcomes for consumers.

Watch my short video below for some simple checks that may help weed out a good adviser from someone intent on feathering their own nest at your expense.

For a second opinion on advice already received, schedule a call with one of our team