IBJOpinion

Avoiding fraud easier than recovery

July 3, 2010
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IBJ Letters To The Editor

In response to Greg Andrews’ [column in the June 28 issue], while Congress investigates issues of fraud committed by securities firms, individuals and others in the investment community and considers various regulatory responses, we want to emphasize ways that investors can avoid fraudulent schemes, as the opportunity for restitution rarely compensates investors for their losses.

Investors can avoid fraud by paying attention to the fundamental issues of any financial relationship; specifically, the ethical questions of trust, loyalty and care. Professionals that hold the Chartered Financial Analyst designation are bound to place their clients’ interests above both their own and their employers. Their investment advice must be suitable to the client’s investment experience, risk tolerance, financial constraints, written investment plan and overall portfolio. Also, a written code of ethics and regular training provides boundaries in those situations where “no one is looking.”

Some may think that ethics is a simple matter of knowing right from wrong, but most practitioners find many situations do not fall cleanly to either side. Individuals, families and institutions can take a significant step forward by focusing on the ethical standards of their financial professionals. Doing so gets to the heart of a financial relationship—trust, loyalty and care—values that may require going beyond what the law demands and serve as a basis for long-term wealth creation.

Ultimately, avoidance is the best remedy, because even the most stringent regulation cannot return what is lost when investors are harmed by fraud. 

__________
Bill Wendling, president
Todd Sears, advocacy liaison
CFA Society of Indianapolis

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  1. Socialized medicine works great for white people in Scandanavia. It works well in Costa Rica for a population that is partly white and partly mestizo. I don't really see Obamacare as something aimed against whites. I think that is a Republican canard designed to elicit support from white people for republican candidates who don't care about them any more than democrats care about the non-whites they pander to with their phony maneuvers. But what is different between Costa Rica nd the Scandanavian nations on one hand and the US on the other? SIZE. Maybe the US is just too damn big. Maybe it just needs to be divided into smaller self governing pieces like when the old Holy Roman Empire was dismantled. Maybe we are always trying the same set of solutions for different kinds of people as if we were all the same. Oh-- I know-- that is liberal dogma, that we are all the same. Which is the most idiotic American notion going right back to the propaganda of 1776. All men are different and their differences are myriad and that which is different is not equal. The state which pretends men are all the same is going to force men to be the same. That is what America does here, that is what we do in our stupid overseas wars, that is how we destroy true diversity and true difference, and we are all as different groups of folks, feeling the pains of how capitalism is grinding us down into equally insignificant proletarian microconsumers with no other identity whether we like it or not. And the Marxists had this much right about the War of Independence: it was fundamentally a war of capitalist against feudal systems. America has been about big money since day one and whatever gets in the way is crushed. Health care is just another market and Obamacare, to the extent that it Rationalizes and makes more uniform a market which should actually be really different in nature and delivery from place to place-- well that will serve the interests of the biggest capitalist stakeholders in health care which is not Walmart for Gosh Sakes it is the INSURANCE INDUSTRY. CUI BONO Obamacare? The insurance industry. So republicans drop the delusion pro capitalist scales from your eyes this has almost nothing to do with race or "socialism" it has to do mostly with what the INSURANCE INDUSTRY wants to have happen in order to make their lives and profits easier.

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