Not ANOTHER designation! NACFF? Ugh!

Dec 6, 2018

  1. DHK
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    DHK "YOU CAN'T HANDLE THE TRUTH!"

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    Just opened up my issue of InsuranceNewsNet magazine for December... and I find this little "gem":

    NACFF

    "Be a CERTIFIED financial fiduciary!" Until January 1st, 2019, you can take their course for only $99 (saving $1,600 or so).

    National Association of Certified Financial Fiduciaries

    Be Fiduciary Training – Don't Just Say You're Fiduciary-Be Fiduciary.

    CFF | FINRA.org

    Either you are a person whom people can trust, or you're not. If people are asking you "are you a fiduciary?" it's probably because they don't trust you yet, you haven't demonstrated that you're worthy of trust, or they're reading a publication that told them to ask the question.

    Just another money-grab by people who see a "credentialing" opportunity.

    If you want a fiduciary designation, there is AIF, RF, and others. I'm just tired of seeing other new associations "pop up" ready to offer a new set of letters for advisors to promote themselves to "earn trust" because of "your letters".

    Just getting tired of this game.
     
    DHK, Dec 6, 2018
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  2. shonceman
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    shonceman Guru

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    Yes, but I've got letters behind my name that prove I'm smart, right? So wouldn't more letters mean I'm even smarter? :goofy:
     
    shonceman, Dec 7, 2018 at 11:21 AM
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  3. rousemark
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    rousemark Still Here!

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    We had guys on the debit back in the day that would say they were "CLUs"... Colored Life Underwriter... That was back in the day when "colored" was still politically correct..
     
    rousemark, Dec 7, 2018 at 11:57 AM
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  4. Markthebroker
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    Markthebroker Guru

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    I read an article a little while back about designations. According to the article, while the designations look good on an email signature, bizz card, etc. and gives additional education, it can also put the agent in a disadvantageous position from an e&o standpoint by giving them further authority and credibility, and thus more liability.


    I am interested in hearing thoughts from everyone on that.
     
  5. DHK
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    DHK "YOU CAN'T HANDLE THE TRUTH!"

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    It's true. You have to be able to back it up the way you present yourself.

    However, strangely enough, your licensing already assumes that you know the entire state insurance code as it relates to insurance sales. Same thing with securities. If you're already liable for knowing something, you might as well get additional certification education so you actually DO know it. Two weeks of study is certainly not enough to be competent in a new field, but it's enough to be liable for your actions and recommendations.

     
    DHK, Dec 7, 2018 at 5:20 PM
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  6. DHK
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    DHK "YOU CAN'T HANDLE THE TRUTH!"

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    Depending on the designation, it should help you REDUCE your liability because you are taught more thoroughly.

    The American College asserts:
    The ChFC®: A Powerful and Comprehensive Financial Designation

    I certainly wouldn't get an "empty" or "weekend" designation without much content. Get one that will help you do more business in a more compliant and thorough way.

    However, it's probably more of a test of the kinds of students that take these designation courses. They desire more knowledge so they can be sure of doing a good and thorough job, rather than being taught HOW to do a good and thorough job.
     
    DHK, Dec 7, 2018 at 5:25 PM
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  7. DHK
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    DHK "YOU CAN'T HANDLE THE TRUTH!"

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    Btw, getting this "CFF" or "Certified Financial Fiduciary" would increase your liability to the Fiduciary Level on EVERYTHING you do... because you're holding yourself out to the public as a Fiduciary.

    Now, I have no problem putting clients interests first and demonstrating that my recommendations meet their financial needs and goals. But I don't want to be holding myself out as a "fiduciary". It's an unnecessary increase in liability.

    Most people who talk about fiduciary duty are those who are RIA/IARs who are Fiduciary Securities Advisors - who are picking portfolios or portfolio managers based on the client needs and not YTB (Yield to Broker).

    And that fiduciary duty does NOT extend to everything else they do. That's why insurance is disclosed on their ADV Part 2 as an "Outside Business Activity". Unless you purposefully hold yourself out in that way, insurance and annuities simply need to be suitable, not a fidicuary sale.

    Michael Kitces is a big financial 'nerd' and he outlines the 4 kinds of financial fiduciaries.
     
    DHK, Dec 7, 2018 at 5:33 PM
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  8. Rob Lion
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    Rob Lion Guru

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    But do i get paid more?
     
    Rob Lion, Dec 7, 2018 at 6:18 PM
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  9. Markthebroker
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    Markthebroker Guru

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    Look at Rob here, getting right to the bottom line!
     
  10. DHK
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    DHK "YOU CAN'T HANDLE THE TRUTH!"

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    Maybe.

    In final expense, it won't matter one bit.

    In retirement income planning using AUM and/or annuities... it may inspire a bit more trust if they don't initially trust you, or they're just doing a "due diligence" advisor questionnaire.
     
    DHK, Dec 7, 2018 at 7:13 PM
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