Another "Can You Trust Your Advisor?" Article

SmartMoney published another article on the subject of public trust in advisors. Then twist in this case is that it compares financial planners to mortgage brokers and college financial aid consultants as well as insurance agents. The conclusion is that college aid consultants do not add much value beyond assisting the completion of standardized forms, and that commissions create conflicts of interest. The money quote:

A surprising number of people believe -- sometimes mistakenly -- that financial professionals are acting in their best interest: 76% of investors said so for financial advisers and 60% said the same for insurance agents, according to a September 2010 study co-authored by the Consumer Federation of America.

So the vast majority of the public is inclined to place their trust with an advisor. It is up to the advisor to nurture that trust and encourage its proliferation. Articles like this are read by target market of the advisory industry.  The perception is accurate: fee-based practices generally have fewer conflicts.  Full disclosure of all compensation and how it is earned promotes continued advisor confidence.