Adviser Scare Tactics: Bad-Mouthing the Competition

By: Matthew Arndt, CFA, CPA, CFP | June 22, 2009 | Bad Financial Advice, Who Can I Trust?

As a consequence of the recent financial turmoil, many investors have lost untold sums and are considering shifting assets away from advisers they perceive to be incompetent and negligent. Knowing this, some advisers are resorting to disgraceful scare tactics to hang onto their clients. Detailed in Brokers Using Scare Tactics To Badmouth Advisor, brokers afraid of losing customers are pulling out all the stops in order to retain these clients.

Investors need to be aware that desperate advisers will try anything, including using dishonorable campaigns and making disparaging remarks about other advisers. Investors need to stick with their game plan and fire away!

One Response to “Adviser Scare Tactics: Bad-Mouthing the Competition”

Georgia Bruggeman

October 12th, 2009 at 8:42 am

This is a very concerning development and one trustworthy advisors need to be aware of. I forwarded this article to a prospect and heard from her that she had in fact heard these same scare tactics from brokers trying to keep her business.

Watch Dog Publisher

Use our National Registry to find pre-screened, five star rated planners and advisors who provide financial advice and services in your community. Free Public Service.

Search Function

Search by Key Word, Category or Author Name

Performance Calculator

Not sure if your investment returns are competitive? Click here for a free comparison to Watchdog benchmarks.

Discussion Topics

Twitter Updates

Another #Ponzi Scheme unearthed by the SEC. Advisor (Greenberg) placed elderly clients into hedge funds. Pretty sleazy http://ow.ly/2BVmS 2010/09/09

@PyreneesInvest It's so sad especially since more investors don't take the time to ask simple questions towards hiring the right advisor. 2010/09/08

RT @PJSacchetta: "First time I did laundry it took me 3 months: all my clothes were labeled wash separately." Byran Allen Babba Bing! 2010/09/08

RT @megasafemoney: Mixing Golf and Business the Perfect Combination http://bit.ly/chSHsv Never cheat while playing with a client. Not good! 2010/09/06

Other Notable Blog Sites

Blogroll
Regulatory Links

Popular Searches

Investor Watch Dog is a weblog designed to inform investors about hidden risks when they invest assets based on the recommendations of financial planners, financial advisors, money managers, insurance agents, and investment sales representatives. Some of Wall Street's biggest investment risks result from Ponzi Schemes, investment bubbles, conflicts of interest, bad advice in bear markets, lobbyist activities that promote industry interests, bad investment products, and anti-investor business practices. While some of these risks are worthy of front page headlines, millions of investors assets are much more frequently exposed to less newsworthy but exponentially more harmful investment scams, financial fraud, illegal investment products, bad financial advice, bad investment recommendations, misrepresentation, omission, abuse of trust, deceptive sales practices, and breach of fiduciary duties. The role of Investor Watch Dog is to shine a spotlight on legal and illegal business practices that undermine the financial interests of investors, retirees, business owners, professionals, executives, and other types of consumers who rely on Wall Street and its financial professionals for the advice and services they need to achieve their financial goals.