Conflict of Interest

A conflict of interest arises when one party has the potential capacity to undermine what is in the best interest of the other party. In other words, the interests and objectives of one party to an agreement, transaction or other relationship are at odds with the counterparty.

Annuity Criticisms Often Boil-Down to Control of Assets


Rule Allowing Financial Advisors to Provide Advice to 401k Customers is Suspended

The Department of Labor has suspended a Bush Administration rule that would have allowed financial advisors to provide investment advice to their 401k customers. The Pension and Protection Act of 2006 contains a provision that allows financial advisors who manage company 401k plans to provide investment guidance to the 401k plan participants. The DOL suspended the rule out of concern for apparent regarding conflict of interest. The concern is that the advisors who sell products may have...
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Watch-Out for Any Annuity Pitch that is Tied to a Reverse Mortgage

The cross-selling of annuities and reverse mortgages is problematic to say the least. There is clear potential for conflict of interest and pitfalls for elderly customers. Consumers should be on the look-out for any sales pitch that ties the two products together. There are, in fact, laws that define the need for separation of the two products during the marketing and sales process: Under the Housing and Economic Recovery Act of 2008, a lender or anyone else can’t require a HECM (a...
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