The Importance of “Full Disclosure”

Mark Johansson: Hi!

. I am Mark Johansson and I am a member of the Financial Planning Association. I am here to discuss choosing a financial planner. Right now, I am going to talk about the importance of full disclosure. At the heart of any working relationship with a financial planner is trust. Trust is built on two factors. Planner acting in your best interest and full disclosure of the planner's background, business practices, and other issues.

Full disclosure means the planner is forthright in providing answers about the planner's work experience, compensation, methods of planning and so on. For example, what other business relationships does the planner have? These might be relationships with the companies whose products the planner sells or referral fees the planners earns by referring you to certain professionals. The financial planner should also disclose any discipline or action that may have been taken against the planner by various government, regulatory agencies and professional associations. If you don't receive full disclosure from your financial planner that's an indication you should take your financial planning needs elsewhere. Like I said earlier choosing a financial planner as important as choosing a doctor or a lawyer. Money is one of the most intimate aspects of our lives and consequently working with financial planner is a deeply personal relationship. As you go through the process of finding and selecting a planner, keep in mind the trust and comfort will be key factors. The Financial Planning Association, Certified Financial Planner Board of Standards Incorporated and National Association of Personal Financial Advisors have formed a collation to raise awareness about the needs for competency and ethical standards so that Americans can easily identify trusted and competent financial advisors. You can learn more about the collations efforts by calling 8003224237. So now that you know the importance of full disclosure from a financial planner, next we are going to talk about how planners charge.