Ethical conduct in financial services is the cornerstone of client trust, professional growth and industry respect. As MDRT members, we are committed to upholding the highest ethical standards, not only because it is the right thing to do but because it aligns with our mission to serve clients’ best interests.
The 3 R’s — relationships, remuneration and records — is the framework that provides practical insights into how advisors can embody the MDRT Code of Ethics in their day-to-day work. By doing so, we ensure long-term success and strengthen the integrity of our profession.
Relationships
Are you in it for the long run?
In this profession, always focus on developing long-term relationships. It’s not about money; it’s about trust. That’s the only currency we deal with. All advisors, both veterans and new, need to grow trust seeds, not money seeds.
Developing long-term relationships is never by chance. How do we do so? By doing what we say we will do, by always underpromising and overdelivering and by being transparent. We have no idea where these relationships can lead, so always ask yourself how you would want to be treated, and then treat others the same way. When we do the right thing for clients, we will sleep well at night.
Remuneration
Being transparent about compensation is a key part of being an ethical advisor. Many advisors are compensated by either commission or fees, or both. Yet transparency isn’t just a regulatory requirement. It’s a key element of trust.
“I tell clients and prospects, ‘I want you to fully understand how I’m compensated, so you’re never wondering what’s in it for me,” said Trent C. MacKeen, CFP, CLU, a five-year MDRT member from Wellington, Nova Scotia, Canada. “Whether someone says so or not, they’re curious about our compensation. Openly discussing how I’m compensated creates transparency, builds trust faster and keeps me focused on providing value. When clients know exactly how I’m paid, they can focus on what matters to them: achieving their financial goals.”
Ann Baker Ronn, CLU, ChFC, a 26-year MDRT member from Houston, Texas, USA, charges clients a flat fee for an analysis of their entire financial picture, similar to having an annual physical by a physician.
“We provide them with the range of fees before they hire us, and we are clear as to what the fee covers,” Ronn said. “At the end of our financial planning process, the client can continue working with us or not. This clarity gives our client freedom to choose the path they are most comfortable with after they have been educated with a holistic view of their financial situation.”
Records
The MDRT Code of Ethics provides a road map for advisors to uphold client interests, protect privacy and make full disclosures. With digital solutions, advisors can uphold these standards by securely storing client data, facilitating informed conversations, and maintaining transparency in every client interaction.
Digital tools provide secure, organized storage, enabling advisors to efficiently access and update client information, which is essential for making recommendations that reflect the client’s current situation and financial goals. This access directly aligns with MDRT’s principle of prioritizing the client’s best interests by supporting prompt, accurate advice. Advisors are also able to make full, clear disclosures when their records are detailed and accessible, enabling clients to make decisions confidently and with full awareness.
Additionally, with MDRT’s emphasis on confidentiality and privacy, digital solutions that encrypt and securely store client information reflect the highest standards of respect for client privacy. Good record keeping supports legal compliance and minimizes the risk of errors or miscommunication, ensuring advisors abide by all jurisdictional laws.
Ultimately, by following the code through diligent record management and digital innovation, advisors can strengthen client relationships and contribute positively to the financial services profession.
The core of financial services
Ethics is not just a guideline. It’s the heart of our profession. By focusing on relationships, remuneration and records, we ensure that our actions reflect the values and principles outlined in the MDRT Code of Ethics. When we prioritize client trust, practice transparency in compensation, and uphold the highest standards of confidentiality and record management, we strengthen the foundation of our profession and enhance the quality of service we provide.
Let us all recommit to these principles, knowing that by doing so, we serve our clients better, uphold the integrity of our profession and create a legacy we can be proud of.
MDRT Code of Ethics
MDRT members commit to operate in an ethical and upstanding manner for the benefit of the public and the insurance and financial services profession. The Million Dollar Round Table’s Code of Ethics sets the standards for attaining this goal; therefore, members shall:
- Always place the best interests of their clients above their own direct and indirect interests.
- Maintain the highest standards of professional competence by seeking to maintain and improve professional knowledge, skills and competence.
- Hold in strictest confidence and consider as privileged all business and personal information pertaining to their clients’ affairs.
- Make full and adequate disclosure of all facts necessary to enable clients to make informed decisions.
- Maintain personal conduct which will reflect favorably on the insurance and financial services profession and the Million Dollar Round Table.
- Determine that any replacement of an insurance or financial product must be beneficial for the client.
- Abide by and conform to all provisions of the laws and regulations in the jurisdictions in which they do business.
