Marta B. Dunton, widow of Loren Dunton, the founder of financial planning, recently called the new E&O Insurance available to members of Financial Advisors Legal Association,
“… A historical highlight in the evolution of financial planning!
This is a major high point. Now, finally, the planner and his or her practice can be adequately protected. This insurance is unique, original, and one-of-a-kind. The planner is no longer compelled to face potential litigation alone. Today planners are more subject to legal actions than are any other profession, even doctors. And the average cost for a typical defense is now over forty-two thousand dollars. This special coverage has long been needed to protect planners. There is strength in number and that will help keep the cost affordable.
“I congratulate FA Legal for making this important benefit possible for America’s financial planners.”
Speaking from the balcony of her San Francisco residence that overlooks the Golden Gate Bridge, the “First Lady of Financial Planning,” Marta B. Dunton further explained, “Loren was known as the man who created a profession but never practiced it. Loren created the term ‘financial planning’ and devoted years to creating the first financial planning associations. These were the International Association for Financial Planning, (IAFP) now the Financial Planning Association (FPA), The College for Financial Planning (ICFP), the Certified Financial Planner (CFP) designation, and the National Center for Financial Education (NCFE). Loren also created Financial Planning magazine, the first publication serving this new specialty discipline.”
“He also devised the process of financial planning and during his lifetime he remained a major influence on the culture of financial planning.
“I wish Loren could have seen the arrival of this special new insurance that will protect the planner and his or her business. Those who practice this profession have long deserved such protection! I feel that financial planning has finally truly arrived. Planners no longer have to be at such high risk.”
Dunton’s precepts lead to the establishment of the International Association of Registered Financial Consultants. Each year the IARFC presents the Loren Dunton Award. Money magazine chose Dunton as ‘One of the ten most influential money men in the history of the USA.’ USA Today called Dunton, ‘The founding father of one of America’s greatest industries.’ According to Marta Dunton, “Loren dedicated his life’s work to establishing the process that today has grown into a multi-trillion dollar industry. Loren was a man of vision who recognized a great need.
“Loren would be thrilled over the new development of truly comprehensive insurance coverage that is now available through FA Legal to better protect the individual planner. “
Robin Mills, President of FA Legal, stated; “We recognized and addressed the most critical problem facing planners today. There is an explosion of litigation. This threatens all financial planners. Every planner without this coverage is at great risk. The traditional E&O, that has been available up until now, has not been sufficient at all. The new availability of this vital protection marks a definite advance in the evolution of the financial planning profession.”
Ms Dunton further expressed that …
“Loren would have been very pleased over this important development thatwill adequately protect America’s financial planners. I wish this could have been available sooner.”
"When I first saw Financial Advisors Legal Association about three years ago, I knew right away that it made sense. As time has gone on, I have relied on your services for general advice as well as to navigate a potential trouble spot in my practice. I fail to see why anyone in the insurance and financial industry would not deeply consider joining your organization."
Steve Caldara
Member since September 26, 2002
"Thank you for your recent help regarding documents and employment contracts. Your service is outstanding."
Gary J. Harloff, Ph.D., RIA
Member since May 7, 2004
"While affiliated with a prior broker/dealer several representatives requested that I check into FA Legal either to replace our E&O Policy or as a supplement to a more basic policy. It was an independent broker/dealer with 125 reps whose practices varied from the very basic mutual funds and/or variable annuities to penny stocks, to private placements to investment advisory services and wrap accounts. By the time we found an E&O carrier that would cover all activities, all the riders made it so expensive the representatives needed a loan to cover their share of the premium. Needless to say, no one was happy. Too bad we didn’t just pursue FA Legal.
"When I joined my current Broker Dealer Firm, one of the requirements was that all registered persons become members of FA Legal. FA Legal is a very valuable resource for me. As a compliance officer, I probably notice benefits that a representative may not notice."
- First of all is the continuing education. I use the competency exams as a part of our Firm Element CE and many of our registered reps take the final test for insurance CE credits. Plus it contains practical advice that the representatives can incorporate into their business;
- When I need to create a new form for our representatives to use, FA Legal Members Only website is one of the first places I look. The forms available meet the regulatory requirements and are updated as the requirements change;
- FA Legal has also been a tremendous resource on the changing regulatory environment. This includes the newsletter and the website;
- Additionally access to top-notch securities attorneys if and when the need arises is extremely beneficial.
Deloris Weidner, Chief Compliance Officer
Member Since: Sept 13, 2004 |
