The advisor was also found guilty of having clients sign various unfinished documents related to annuity applications, including blank spaces that needed to be filled in. As a result, the advisor received a fine, was placed on probation for a year, and was required to take additional ethics courses. FOR THE ADVISOR, IT’S STRIKE TWO. (I understand that baseball requires three strikes, but this strike should be enough to convince investors to seek financial advice elsewhere.)Do you want to learn more? Visit Hawley Advisors
Finally, the client decided that a three-way conversation between himself, the annuity advisor, and myself would be in his best interests. I agreed that a meeting like this would be beneficial, and I suggested that we meet in my office. However, I informed him that in order to complete my due diligence, I would require a copy of the annuity contract he was considering. Because annuities are so complicated (on purpose), it takes even a well-trained, fee-only Certified Financial Planner several hours to read and understand the pertinent information and determine if it is a good fit for a client. The client agreed and requested that the advisor fax or email the necessary information to me right away. One week later, on the morning of the meeting, I informed the client that, despite multiple requests, I had never received the information and that it would be inconvenient to conduct the meeting until I had a chance to review the material. After the client agreed, the meeting was called off. The annuity salesman, on the other hand, showed up at my office at the scheduled appointment time, informing me that the client was still planning on attending. I inquired as to why I had not been given a copy of the relevant material ahead of time; the advisor responded that he had been out of the office for the previous week.