In Focus
July 22, 2002
ecently Salomon Smith Barney announced plans to train its brokers in estate planning. This will not be training in general concepts followed by a referral to a qualified estate-planning attorney. Instead, this will be an advanced training program to certify its brokers as estate planning advisors.
As reported by Registered Rep magazine, Solly's move is intended to "boost its coffers by encouraging reps to do more fee-based estate planning for wealthy investors".
Beware, trouble lies ahead. Approaching Y2K, I predicted this move into non-traditional areas to replace lost commission revenue. We have witnessed much negligence already with respect to brokerage firm advice surrounding the exercise of employee stock options.
But Solly's move, if followed as ardently by other brokerage firms, has much broader implications. Millions of wealthy investors need competent estate planning. Few will realize that they have been given incompetent advice until they pass. Then we will hear from their heirs.
— James J. Eccleston
FinancialCounsel.com
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