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Society Connections

Greater Philadelphia ChapterSociety of Financial Service Professionals

Fall 2011

Editors Message: Membership Value

For 80 years the Greater Philadelphia Chapter of the Society of Financial Services Professionalsand its membership has been a leader in carrying out the mission of:

Empowering networks of professionals identified by a set of core values, beliefs andthe opportunity for learning and growth;

Providing continuing education that is comprehensive, current and practical andwhich extends the wisdom within our membership; and,

Recognizing as members those who abide by our Code of Professional Responsibility.

Our membership year began on October 1 and we continue to seek out professionals whoshare the core values and ethical standards of our current members. Of our 350 members, themajority are from the life insurance and financial planning arms of our industry. But we have agrowing population of Attorneys, CPAs, and other professionals who all represent vital parts ofa client’s planning team and want those membership segments to grow significantly in the nextfew years. So, we ask each and every one of you to reach out and invite professionals from alldisciplines to join our chapter membership.

We believe the true value you receive from membership in any professional organization is indirect proportion to your participation in the events and what you give back. There is noquestion we all lead busy lives, personally and professionally. Getting involved in the Chapterallows you to remain current and connects you to others within the Philadelphia financialservices industry giving you more opportunities to share and receive advisor referrals. Inaddition, you can influence the future direction of the chapter. This year we have scheduledover a dozen education and social events. This is on top of the many great education andprofessional enhancement opportunities provided through the National SFSP, including theArizona Institute and The Clinic. We also co-sponsor events with the Philadelphia EstatePlanning Council and NAIFA

To encourage you to seek out new members, our Member Get A Member program will credityour dues with a 25% discount for each new member you sponsor. We have found youngprofessionals are willing to participate in an organization like ours because of the content,networking opportunities and the opportunities to play a leadership role in the organization.So, please, as you renew your membership for 2011-2012 consider how you can get morefrom your Society and reach out to other professionals and ask them to help drive the directionof the financial services industry here in Philadelphia through Chapter membership.

Glen Coral, CLU, ChFC Chairman, Society Connections CommitteeVice Chairman, Membership CommitteeCBIZ Special Risk Insurance Services, Inc. gcoral@cbiz.com

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Society Connections

Greater Philadelphia ChapterSociety of Financial Service Professionals

Fall 2011

President’s MessageMessage from Trisha Hall, Esq.President, 2011-2012

“Too many times we stand aside and let the waters slip away, till what we put off till tomorrowhas now become today. So don't you sit upon the shoreline and say you're satisfied. Choose tochance the rapids and dare to dance the tide.” The great philosopher, Garth Brooks, “TheRiver”

As I alluded to in my last message to you, this fall our Chapter has met a convergence of itslong history and new challenges. Many hours have been spent by many dedicated volunteers tonavigate these converging waters, with several successes to boast.

Past president, Jon Corle, has been working with a newly formed sub-committee ofmembership to plan a celebration for our 80th anniversary. You will read more about thiscelebration, and about our 80-year history in this issue of Connections, but I want to take amoment here to acknowledge the herculean effort of these few people, many of whom haveserved on the board and as president in the past: David Karr, Jeff Podraza, Vince Mitchell,Adelina Kieffer, Frank Branca, Ron Capone, Howard Soloway, David Watson, JosephSaskiewicz, Marian Coffey, and Ralph Dittrich.

Curt Cyliax began working with the education committee last spring to plan and organize ourcalendar of seminars for the year. September started off with a well-received, but sparelyattended, program on Retirement Planning For Women. Panelists Dr. Anthony Curatola, JosephF. Ford Professor at Drexel University’s LeBow College of Business; Christine Palmer Hennigan,Independence Financial Associates, Chartered Financial Consultant & Certified Divorce FinancialAnalyst; Suzanne Jackson CPA, Director of Business Development, Stephano, Slack, LLC led aninteractive debate on the topic. We discovered in planning the event that many of ourmembers have not been receiving Chapter emails from Constant Contact; therefore, we will belooking for a suitable alternative as we suspect this was a factor in the number attending.

Our next program has been planned by Kevin Thomas of Brown & Brown Advisory on DisasterPlanning for High Net Worth Families, presented by John Matis, Disaster PreparednessSpecialist, Private Client Group at Chartis. With the spate of earthquakes, hurricanes,tornadoes and flooding our region experienced late this summer, this program is all too timely!

Membership chairs Dave Bernaus, Ralph Dittrich and Glen Coral have been busy strategizingways to attract and retain more members along with committee members Ron Capone, PaulVehlo, Jeff Podraza, Greg Marquardt, Mike Felmeth, and Rich Locher. You can look forward toattending a number of fun events this year thanks to this energetic and creative group. Aspecial shout-out to Glen for assembling, providing content, and editing this newsletter!

Plans are underway for January’s View From the Top with NAIFA-Philadelphia. Vice PresidentGreg Marquardt is chairing this effort for our Chapter. Greg is also chairing our FinancialProfessionals Dinner with vice-chair Derek Lemke, and committee members Adelina Kieffer,

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Greater Philadelphia ChapterSociety of Financial Service Professionals

Fall 2011

Anne Rigney, Bill Widing, Dave Bernaus, Frank Merenda, Phil Levin, Jay Perlman, JoanWinchester, Kevin Handforth, Paul Vehlo, Ron Capone, Susan Baxter and Vince Mitchell. Onceagain, this highly anticipated event will be held at the end of March, with exact date, locationand speaker to be announced.

Bill Widing and Jim McCormack continue to work on establishing a pro-bono and/or basicfinancial planning seminar through the Foundation of SFP’s Financial Education Partner’sProgram.

John Markman and Brenda Duska have created a LinkedIn group for University Partners andhave been working on developing relationships with new partners Temple, Villanova and St.Joseph’s Universities as well as strengthening current ones with Drexel and WidenerUniversities.

Our new executive director, Alanna Barry McCloskey, has been working tirelessly to get up tospeed on our Chapter and its ways, while improving many aspects of our offerings. Sheresearched and priced D & O and fidelity bond coverages which the Chapter has sincepurchased; researched and priced locations for educational seminars, the 80th anniversarycelebration and membership social events; updated our membership directory; created a newChapter website and Linkedin group; and purchased a digital camera and digital recorder so wecan begin recording and making available our monthly seminars. This is in addition to herregular on-going responsibilities and patient responses to many email inquiries from yourstruly.

Finally, I would like to recognize two of our members for extraordinary service: fifty-yearmember Mahlon B. Simon, Jr., CLU, ChFC, for attaining Member Emeritus status from Nationaland Ron Capone, CLU, ChFC, LUTCF, for winning a much-deserved Paul Mills Scholarship fromthe Foundation of SFP for his demonstrated commitment to lifelong education, volunteerismand ethical practice.

As you can see, many of our members are dancing the tide of service to our Chapter; most inmore than one capacity. Through their involvement, they have made new connections,reestablished old ones and strengthened the organization that provides so much to them. Idare you to join them and reap similar rewards. I look forward to seeing you at WhitemarshValley Country Club November 3rd!

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Greater Philadelphia ChapterSociety of Financial Service Professionals

Fall 2011

Connections to …. Members

Member-Get-A-Member

Member Get a Member is special membership growth incentive campaign for all Chapters andcurrent individual members. The contest will run during the months of July 2011 through June2012.

Individual Member Prizes: Every member that recruits just one new member is a guaranteedwinner!

Grand Prize: The member that recruits the most new members will receive a free 2012 FSPClinic Registration package including tuition, 2 nights onsite hotel lodging, airfare voucher of upto $500, PLUS complimentary national dues for the 2012-2013 membership year.

Recruit just 1 new member and receive 20% off your 2012-2013 National Dues!

For more information about MGAM, please visithttp://www.financialpro.org/public/mgam_details.cfm

New Study Groups Forming

Study Group Network Opportunities are Available! The Chapter is looking for a few good folks to kick off new study groups in the greaterPhiladelphia area! A study group is a great way to market and network with other professionalswithin your local area, learn more intimately what is working from a marketing and businessdevelopment perspective and share valuable expertise. Two groups are presently operating in Chester and Delaware counties and we are anxious toengage more of the membership in new groups in Philadelphia, Bucksand Montgomery Counties!

Ideally the study groups should be limited to one member each from the various disciplines -legal, accounting, investment, trust, commercial and life insurance, etc. that allows for greaterdiversity of expertise and complementary perspectives. It is up to the groups to establish their own meeting times and agendas, share case studies,provide updates on pending tax, legal or legislative topics, or maybe just play golf! If you would like to discuss the pending study group opportunities please feel freeto email Scott Ridge at saridge@yahoo.com!

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Greater Philadelphia ChapterSociety of Financial Service Professionals

Fall 2011

University Partners Program

The FSP created the University Partners Program (UPP) in 2007 to help build a bridge betweenthe current generation of financial service professionals and the future generation ofprofessionals who are in undergraduate and graduate degree programs in colleges anduniversities around the country. Through Professor Memberships and Student Memberships, students and their faculty advisorsare given access to all the FSP published materials that are archived on the FSP website. Inaddition, the students and their professors are also members of one of our 175 local chaptersaround the country and have access to some of the best financial service professionals in thecountry thorough their local chapter membership. Our Chapter is very pleased to have long standing relationships with Drexel University andtheir LeBow School of Business, along with Widener University. Members have taught courses,conducted workshops and participated in the schools' job fairs. We are also seeking newrelationships with St. Joseph's, Villanova, Temple and DeSalles Universities. If any members are involved in the alumni associations of the business schools at theseinstitutions and would like to foster those relationships please contact Chapter UPP Chair, John Markman at john_markman@comcast.net.

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Connections to …. Your Chapter

Sponsorship Opportunities Available!

Breakfast Forums (Section) Sponsorship - $300(more than 1 company permitted per meeting)1) their company name and contact info on all promotion for that section meeting2) hand-out materials at the section meeting3) give a two minute talk about them or their company4) have a company link and/or contact email on the calendar page with the section listing.

Membership Happy Hour Reception - $300(more than one company permitted per meeting)1) their company name and contact info on all promotion for the meeting2) have a 6ft. table and hand-out materials at the meeting3) submit a company profile or article for the web site4) have a company link and/or contact email on the calendar page with the meeting listing.

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Society Connections

Greater Philadelphia ChapterSociety of Financial Service Professionals

Fall 2011

Breakfast Forums (Exclusive) Sponsorship - $375(only one company per meeting) (no charge to FSP members)1) their company name and contact info on all promotion for that section meeting2) hand-out materials at the section meeting3) give a two minute talk about them or their company4) have a company link and/or contact email on the calendar page with the section listing.

Network & Knowledge (Expanded) Meetings - $375(only one company per meeting) (no charge to FSP members)1) their company name and contact info on all promotion for that DVD meeting2) hand-out materials at the DVD meeting3) give a two minute talk about them or their company4) have a company link and/or contact email on the calendar page with the DVD listing.

Joint Meetings - $500 (max of two companies)1) their company name and contact info on all promotion for the meeting2) have a 6ft. table and hand-out materials at the meeting3) submit a company profile or article for the web site4) have a company link and/or contact email on the calendar page with the meeting listing.5) have a full-page ad on the inside front or back cover of the program materials

VFT Meeting - $500(max of one company - NAIFA-GP may also have a sponsor)1) their company name and contact info on all promotion for the meeting2) have a 6ft. table and hand-out materials at the meeting3) submit a company profile or article for the web site4) have a company link and/or contact email on the calendar page with the meeting listing.

Chapter Committee Information

Get the most out of your membership by joining a committee. Email Alanna Barry McCloskey(amccloskey@maguirehegarty.com), and tell us how you would like to be involved.

If you are interested in serving on the Membership Committee, join the next meetings: Thursday, October 27th & Tuesday, November 29th at 8 am at the offices of CBIZ. Email Glen Coral or Alanna Barry McCloskey for more information.

Membership - Dave Bernaus, Ralph Dittrich and Glen Coral, Co-ChairsWork to recruit and retain members, develop member events and programs, assist newmembers to participate in our Chapter. Meets last Thursday of each month.

Financial Professionals Dinner - Greg Marguardt and Derek Lemke, Co-ChairsPlan and execute our Chapter’s largest event, the Annual Financial Professionals Dinner.Responsibilities include choosing a speaker, soliciting sponsors and advertisers, and advisingon the event itself. Meets at least twice per month from August through late March.

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Society Connections E-Newsletter - Glen Coral, ChairComposes, solicits contributions for, and edits the quarterly Chapter e-newsletter. Meets asneeded during development of each issue.

Education - Curt Cyliax, ChairPlan and execute monthly educational meetings. Meets as needed.

The College & University Partners Program - Brenda Duska and John Markman, Co-ChairsTo reach out to students by creating a pipeline between FSP and faculty at colleges anduniversities to bring FSP benefits to those students during their formal learning process. Meetsas needed.

Study Groups - Scott Ridge, ChairMembers may participate in disciplined and geographic formed meetings of financialprofessionals in order to gain knowledge and business.

View from the Top - Trish Hall, ChairPlan and execute the annual View from the Top joint meeting with NAIFA-GP, includingrecruitment of speakers and selection of location. Meets as needed in months prior to themeeting in January.

Community Service and Public Relations - Bill Widing and Jim McCormick, Co-ChairsCoordinates the Chapter’s community outreach (e.g. Habitat for Humanity) and public relationsactivities. Meets as needed.

Bits & PiecesBy Glen Coral, CBIZ

How Portable is Portable?Martin Shenckman, CPA, PFS and Steve Akers, JD takes the temperature of various portabilityelection options that will impact many couples of modest net worth. They stress the impact oflongevity, second marriages, appreciation of assets, and the consideration of futureincome/estate tax rates may have significant impact on what portability election makes themost sense. They go further to explore what perhaps Congress did not intend with portabilityby introducing us to Henry VIII and his various wives. (Editor’s Note: For decedents dying afterDecember 31, 2010, Form 706 must be filed by the executor in order to make a portabilityelection even if a Form 706 would otherwise not need to be filed.)Evaluating the Portability Options, Article excerpted from Estate Planning After the Tax Reliefand Job Creation Act of 2010: Tools, Tips and Tactics and published by www.CPA2Biz.com,Sept. 6, 2011

Special Needs Families Need Special Attention!According to a MetLife study of special needs parents, nearly one third have done nothing toplan for their children’s financial futures and two thirds have not prepared wills. Establishingspecial needs trusts do well to protecting state and federal benefits. Retirement plan assets left

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Greater Philadelphia ChapterSociety of Financial Service Professionals

Fall 2011

to a special needs person either directly or in trust many introduce other planningcomplications.

Graceful Exit or Fall from Grace?CPAs are in the enviable position of generally being the trusted advisor of choice for mostbusiness owners. And many business owners don’t plan to fail, but they often do fail to plan,especially as it relates to exiting their business. Heidi Bolger, CPA points out the sooner abusiness owner begins developing a plan the more options he/ she will have and the easier itwill be to make adjustments to the plan to meet life changing circumstances.Is There an Ideal Time to Create a Succession Plan and Transition Ownership?www.CPA2Biz.com, Sept 6, 2011

Getting Your Share of Financial AidIt’s fall and for those families with children soon heading to college in the next year a primaryquestion they ask is, “How do we pay for it?” Between gift aid, scholarships and grants, Federalaid and loans how a family works through the process can make a huge difference in their outof pocket contributions. David Juliano, a planning consultant in Waltham, MA, provides insightto advisors.Financial Aid Pie: Getting a Big Slice, Financial Planning, August 2011, http://www.financial-planning.com/fp_issues/2011_8/financial-aid-pie-getting-a-big-slicefamilies-2674391-1.html

Merrill Lynch Survey: Health Costs, Long Term Care Remain Top Retirement IssuesIn a 2011 survey of clients with incomes in excess of $250,000, more than half did not have aplan in place to pay for long term care. Even though these clients were affluent most listedrising health care costs as a number one concern. (Editors note: Given longevity of couples inretirement, and particularly women, retirement planning should include significant focus onprotecting assets for a surviving spouse should the other spouse experience a long term careevent that begins to draw down assets.)Financial Planning Magazine, October 4, 2011, Danielle Reedhttp://www.financial-planning.com/news/riia-fall-conference-keynote-bill-hunter-health-carelong-term-care-costs-2675498-1.html

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Connections to …. Education

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Society Connections

Greater Philadelphia ChapterSociety of Financial Service Professionals

Fall 2011

Connections to … Chapter Events

You Should Have Been There…By Glen Coral, CBIZ

THE CLINIC FOR ADVANCED PROFESSIONALS

In mid-August, here in Philadelphia, the new Clinic For Advanced Professionals provided twojam packed days of retirement, business and estate planning concepts, strategies anddiscussion featuring some of the top legal, accounting and insurance professionals in thecountry! Combined with the Arizona Institute, the Society of Financial Services Professionalsnow has two outstanding continuing education events for CPAs, Attorneys, Financial Plannersand Insurance Professionals.

Attorneys David Glazer , Dick Oshins, Don Jansen and Terry Stanaland updated the nearly 200attendees on new wealth transfer opportunities available under the new tax act, but alsofeatured sessions focused on the importance of reviewing estate documents to address assetprotection and portability issues. The complexity of elder law and estate planning was exploredby Bernie Krooks, JD, CPA, LLM, CELA, AEP. Speaking to a standing room crowd hedemonstrated the growing demand for qualified elder care services and the devastatingfinancial impact improper planning will have on the family.

In a life video teleconference, Bob Keebler, CPA, MST and Ric Lager, RIA discussed thechallenges we have as we plan for retirement, the lifestyle decisions we must consider, theopportunities we have to accumulate retirement assets and how we might make better assetmanagement decisions. Michael Kresh, CLU, CFP took us down the road of “behavioral finance”and how our psychology influences our financial decision-making.

Highlighted in several break-out sessions were new insurance products which combine lifeinsurance or annuities and long term care type benefits, protecting various disability insurancerisks that go beyond simple loss of income, new executive benefit planning strategies, lifesettlements, underwriting large life insurance cases and new opportunities with CharitableRemainder Trusts.

And the session closed with heavy weight Larry Brody, JD, LLM and Kathy Sherby, JD offeringtheir insights into what the future will look like for our estate and business planning practices ina world of rapid financial and legislative change.

But perhaps the most value from the event was the opportunity to meet with planningprofessionals who came to Philadelphia from all over the country and learn from each other aswe strive to meet the financial needs and objectives of our clients.

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GENDER DISADVANTAGE – WHAT WOMEN NEED TO KNOW WHEN PLANNINGFOR THEIR FINANCIAL FUTURE

Mark Loschiavo, Sr. Executive in Residence and Executive Director of the Drexel UniversityBiada Center for Entrepreneurship moderated a panel discussion on what challenges womenface in planning for their retirement. Panelists included Dr. Anthony Curatola, Joseph F. FordProfessor at the LeBow College of Business at Drexel, Christine Palmer Hennigan, ChFC, CFA atIndependence Financial, and Suzanne Jackson, CPA, Director of Business Development atStephano Slack, LLC.

Retirement is a hot economic topic today and the discussion highlighted some significantstatistics and current socio-economic factors that contribute to a continued financial gendergap between men and women. The panelists also gave us a better understanding of howwomen approach financial decision making and how to set the stage for more lasting, trustedrelationships with families for the benefit of their own practices.

A key element is the roles in which women often find themselves – that of caregivers forchildren and elderly parents. This often results in having fewer years in the work force, impactscareer advancement and results in less money accumulated for retirement. Statistically womenlive anywhere from three to seven years longer than men, and there are even greaterdisparities between men and women when individual states are considered. The defined benefitformulas for determining retirement income result in up to 20% less annual benefits for womenassuming the same initial asset values. And because women life longer they generally areliving in at a time when expenses are usually the highest due to medical and long term carerequirements. Combining all these factors, and others, it is easy to see how women generallyhave 50% of the retirement income and asset values enjoyed by men.

The divorce rate is still hovering at 50% or more and this puts women at a furtherdisadvantage, especially if they are the stay-at-home parent. Their economic value could bemeasured at anywhere between $60,000 and $180,000 annually depending on the family’slifestyle. This underscores the need, not only for women to take care of themselves financially,but for families to make sure the economic value of that stay-at-home parent is protected. Weoften find women are uninsured or underinsured, and the loss of that stay-at-home parent/wiferesults in significant economic losses for the survivors. There is still a presumption in familiesand in business circles that men make the financial decisions.

What we discovered from the audience is in many families the women hold the keys to thecheck book and handle the day to day family finances. But, with that said, many women do nothave a strong financial education background or experience. They spend less time on planning,are financially conservative and tend not to utilize advisors. The advisor community isdominated by men who tend to be less patient, while women gather lots of information frommany sources and generally will not make decisions unless it is emotionally “right”. All of thispoints to the fact that women are generally underserved by the financial services industry, yetthey probably control most family wealth.

Advisors successful in women’s circles are often referred in, and it is the trust in the referral

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source as much as it is the trust developed with the advisor that will result in a successfullonger term relationship. Advisors to women should expect longer decision cycles, emphasizeeducation and would do well to develop clearly outlined road maps…a “what happens if…”approach. An example of keeping things simple and organized is an instruction binder toinclude locations of legal and financial documents, keys/passwords to opening electronic filesand access to bill pay accounts. And, to the extent possible, advisors should get to know thenext generation because they will need help in settling estate matters and it gives advisors theopportunity to extend the relationship through multiple generations.

Please check the links below for additional information on this topic:

http://www.metlife.com/assets/cao/mmi/publications/studies/2011/mmi-women-retirement-extra-long-life.pdf

http://www.fa-mag.com/component/content/article/7-news/7637.html?Itemid=68

Chapter Set To Celebrate 80th Anniversary

On Thursday November 3rd, our Chapter will celebrate its 80th Anniversary with a programand cocktail reception at Whitemarsh Valley Country Club. The program will begin promptly at3:00 P.M. and will feature the presentation of the newly created Distinguished Service Award;a retrospective on the Chapter and our Society; and a keynote speech by Richard Weber, MBA,CLU, AEP. Mr. Weber is the founder of The Ethical Edge, Inc and is the President Elect of theSociety of Financial Service Professionals. The program will be followed by a cocktail andnetworking reception at 4:30 PM.

This promises to be a wonderful and informative afternoon for members and prospectivemembers to reflect upon the Chapter’s accomplishments and look forward to its future. We willalso have the opportunity to be reunited with members and friends that we may not see sooften. The Anniversary Committee has been working diligently over the summer to make thisa first-class event, one that you will not want to miss. Please mark your calendar and registertoday.

This will also be an excellent opportunity for you to introduce one of your professionalcolleagues to our great Chapter. Please consider bringing a guest. At the modest cost of $20per person, this will be a great value for a great event. We thank our sponsors for making itpossible to offer this event at such an economical price.

The Anniversary celebration is an inaugural event that our Chapter plans to hold in the fallevery five years. We will celebrate our Chapter and honor members who have rendereddistinguished service to our Society and the financial service industry. As a member, you havethe privilege of nominating someone you know for the Distinguished Service Award. Pleasekeep this in mind for the next Awards presentation in 2016.

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Thanks to our sponsors, who as of this date are: Adelina Kieffer; Bayard, Trisha Hall, Esq.;Branca-Rampart Agency, Inc, Frank Branca, Sr.; John Hancock, Vince Mitchell, CLU, ChFC;Karr Barth Associates/AXA Advisors, David Karr; Nationwide Financial, Dave Bernaus, CLU,ChFC; Ohio National Financial Services, Ralph M. Dittrich, CLU, ChFC; Principal Financial Group,Marian Coffey, RHU; Strategic Wealth Management Advisors, Howard L. Soloway, CLU, ChFC,MSFS; Tycor Benefit Administrators, Inc., Jonathan S. Corle.

On behalf of the Anniversary Committee, we look forward to seeing you on November 3rd atWhitemarsh Valley Country Club.

Jonathan Corle, CLUChairperson, 80th Anniversary Committee

Upcoming Meetings & Events

Thursday, October 20th: Disaster Planning for High Net Worth FamiliesNetworking Breakfast, Discussion and CE at The Offices of Alpha Benefits, Plymouth MeetingGuest Speaker: John Matis Disaster Preparedness Specialist, Private Client Group, Chartis. Security Protection for High Profile and High Net Worth Clients (1 credit)The high net worth community is a challenging and unique group when it comes to personalsecurity. Their financial status, and often the celebrity that goes along with it, can make theman especially inviting target for kidnapping, extortion, fraud, lawsuits, home invasioncarjacking or stalking.Co-Sponsored by Chartis and Brown & Brown.

Thursday, November 3rd: 80th Anniversary Celebration Thursday, November 17th: Discussion on Special Needs Planning For more information about upcoming events, or to RSVP, please visit www.gpsfsp.org

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Connections to …. Industry

Connections to … Fiduciary Standards

FIDUCIARY STANDARDS – ACTION LIKELY DELAYED UNTIL 2012By Glen Coral

The past several weeks has seen significant activity in the adoption of a fiduciary standardacross the financial services industry only to result in further delays. The Department of Labor

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withdrew the expansion to include retirement plan advisors in the definition of “fiduciary” citingthe need to complete an additional cost-benefit analysis. The report fell short of the propercost analysis now being requested. It is likely that implementation of the fiduciary standard willnot occur until sometime in 2012.

Under Section 913 of the Dodd-Frank Act, the SEC was given apparent authority to write auniform fiduciary standard regulation that would apply to broker-dealers and their registeredrepresentatives, insurance professionals and investment advisors. The Act also required theSEC to conduct a study demonstrating the harm or benefit impact to investors of the currentstandards prior to writing any new regulation, a report which was issued in January 2011.

There have been strong opposing views of the proposed fiduciary standard between the CFPBoard of Standards, AALU, FPA, and other financial services industry organizations and withinthe halls of Congress. The arguments not only surround the standard itself, but whatregulatory body will actually be given the responsibility for oversight. FINRA and the SECcurrently provide significant oversight to broker-dealers, registered representatives (includinginsurance professionals who sell variable products) and investment advisors. The SEC has feltsignificant criticism during recent years given the Madoff scandal and the financial crisis. It iscurrently underfunded and the possibility exists for oversight to be outsourced to SROs, orplaced in FINRA’s hands.

Sentiment is growing favoring a uniform standard; however, there are many important issuesthat still need to be evaluated and considered to make sure the policy is appropriate for boththe industry and investors. The general consensus appears to favor a fiduciary standard, buthow to craft such a standard across various product/service models, one that will protectinvestors, and at the same time will not reduce but increase access to affordable advice, isextraordinarily complex.

In a comment issued by Rep. Spencer Bachcus, R-Ala., Chairman of the House FinancialServices Committee, “If the SEC decides to issue a proposal to implement [Section] 913,despite no statutory deadline to do so, it must act carefully and comprehensively to avoiddisrupting an investor’s chosen relationship with his or her investment professional.”

Resources:Fiduciary Timetable Pushed Back into 2012, Investment News Issue Alert, 9/25/2011

Foundation for Financial Service Professionals – A Conversation with Chair Cliff Berg,Jr., CLU, ChFC, AEPBy Trisha Hall, Esq.

The Foundation for Financial Service Professionals is a charitable organization created tofoster research, education and ethical practices among financial service professionals to benefitthe public. It was established in 1982 by the leadership of the Society of Financial ServiceProfessionals.

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Guided by its mission, the Foundation is committed to both educational and communityoutreach projects, including:

Paul S. Mills Scholarship to encourage ongoing professional development amongfinancial service practitioners

Journal Author Award to advance scholarly research and writing in financial services

Financial Education Partners™ (FEP) to provide pro bono financial counseling toindividuals in need

American Business Ethics Award (ABEA) to recognize ethical practices in theAmerican business marketplace

Survivors' Guide to provide victims of the September 11, 2001, terrorist attacks, and the2005 hurricanes with financial information and resources

Retirement Planning for Baby Boomers to offer guidance and information to addressbaby boomers' concerns about financial security as the move toward retirement

In October 2007, the Foundation was recognized by the National Multiple Sclerosis Societywith its "Making A Difference" Award for making "an enormous difference to hundreds ofpeople living with multiple sclerosis," according to Nancy Law, National MS Society ExecutiveVice President.

Earlier in 2007, the Foundation received the Associations Advance America Award ofExcellence. These awards build on a tradition of philanthropy first recognized by PresidentGeorge Bush in 1989 with the awarding of the prestigious C-Flag for the Foundation's AIDSEducation Campaign.

I recently spoke with Cliff Berg, this year’s Chair of the Foundation to learn more about it andpass that information along to our members.

Cliff expanded on the description of the Foundation’s activities listed above. Regarding the FEPprogram, Cliff described his own Delaware Chapter’s active participation with the MultipleSclerosis Society. He once worked with a woman from Seaford who had separated from herhusband and was very concerned about the effect a divorce would have on her pension.Although this work rarely leads to business for the volunteer, it is extremely rewarding. DickBell of Calabasas, California was the driving force in starting FEP and continues to serve asNational liaison for the program.

The Foundation gives the ABEA to small, mid-size and large companies for ethical businesspractices. In prior years, the Award was presented at the annual Forum. However, because theForum has been discontinued in favor of The Clinic, the award was presented to this year’sawardees at the place of business. This took Cliff to the small town of Lancaster, South

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Carolina to present the small business ABEA to Eye & Laser, Inc, an Ophthalmic medicalpractice. (Corgan Associates, an architecture and design firm in Dallas, Texas and KimberlyClark, maker of health, hygiene and well being products in Irving, Texas won the mid-size andlarge business ABEAs.) Some Chapters present ABEAs at the local level and these businessesare often then nominated for National awards, in addition to those who are nominated directlyto National.

Members can easily become involved with the Foundation’s various activities by nominatingsomeone to receive a Paul Mills Scholarship. (Established to recognize a commitment toprofessionalism within the field of financial services. Won this year by our very own RonCapone.) Or, a member may nominate a business they know of or work with for an ABEAdirectly to National (the business cannot be a financial services business or one’s own firm.)What a great way to show appreciation to a client! Although our Chapter’s FEP program is in itsinfancy and not ready to be launched, members who are interested in pro bono opportunitiescan contact Jim McCormack of our chapter to help get the program up-and-running, or DickBell who may be aware of needs in our area.

Another easy way for members to become involved is to make a donation. The Foundationused to receive a significant sum of its annual funding from a golf tournament held during theForum. Because the Forum has been discontinued, the Foundation needs direct donations morethan ever. You may do so here:https://www.financialpro.org/foundation/Contribution/support.cfm.

Or, if you’d like to see an SFSP golf tournament or outing once again, and you’re so inclined,you can contact me. There may be an opportunity to join forces with our neighboring Delawareand South Jersey Chapters (thall@bayardlaw.com).

The Foundation is unique to the Society. Other financial professional organizations mayconduct community outreach efforts, very few, if any, have a foundation to support thoseefforts. It’s a wonderful way of giving back using the experience, skills and other enrichmentswe have gained from our industry. Please become involved in one of the ways described aboveand get the word out about.

Connections to … Family Transitions

DO YOU TRUST ME?By Glen Coral, CBIZ

Aladdin uttered these words when he took Jasmine’s hand as they prepared to leap out of thewindow to elude the bazaar police in that great Disney movie. He made the initial sale,disappeared, only to return to the palace pretending to be someone he wasn’t. In the processof reselling the Princess he stumbled and bumbled thinking he knew what she wanted orneeded. What won her heart in the end was his being true to his heart and hers (aside fromsaving the Kingdom)… Simply doing the good and right thing for the people for whom he cared

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deeply.Isn’t trust at the core of our successful relationships with our own families, friends, businessassociates and clients? Trust is necessary and essential if those relationships are to go deepand remain long lasting. Trust and relationships were a central theme expressed at this pastmonth’s Gender Disadvantages education event (see associated article). And it is especiallytrue when working with seniors. The August 2010 issue of Senior Market Advisor magazinehighlighted their 2010 Senior Survey and the results demonstrate the skepticism seniors havewith financial advisors. suspect with the current market volatility and the political and taxenvironment the results may not be so different today.

Slightly less than half of those surveyed in 2010 said they turn to financial advisors forguidance, and those that do indicate they have had great results. One would expect seniors tobe conservative with their investment strategy and the survey reveals 92% want financialproducts that are low risk and provide peace of mind. However, only 7% of those that useadvisors seek out insurance brokers or agents for help. But of those who do not have anadvisor the majority of them said there is nothing anyone could do to earn their business. Inaddition, health care issues are top of mind for seniors, but nearly 70% are rather adamantabout not discussing health care issues with their advisors.

Why is there such disconnect with critical issues such as health care and financial security? Is itaversion to the sales process….to be “sold” a product? Many seniors are savvy purchasers.They take the information and they “think about it”, they go back home and they do their ownresearch, on-line or talking with friends and family, without the pressure of the sales situation.The keys to a good advisory relationship with seniors includes: trust, knowledge, loyalty, goodlistening skills, honesty and integrity. Of those seniors surveyed, specifically the one third ofthose who had longer term relationships with their advisors, reveal the greatest satisfactionwith their progress. These advisors tend to know their clients and listen to what it is theirclients are thinking and why. There is a lot of room at the table, but the dessert follows a verylong meal, and that is the greatest challenge advisors face. But think about this… What bettersuccession plan for your practice than to be able to work with multiple generations? Withouttrust you can’t move between generations.

Steve McCarthy, Chairman of the National Business Ethics Bureau, has some simple advice foradvisors:

Do what’s right for clients. If you do you’ll earn more than enough money. Client needs are more sophisticated. Learn how to address them. Don’t hold yourself out to be something you are not. Don’t misrepresent products. Show the pros and the cons, benefits and risks…full

disclosure. Bottom line…don’t pursue self-interest at the client’s expense.

Aladdin learned his lesson, and in the end he got the money and the girl! Do you trust me?

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Connections NewsletterGreater Philadelphia Chapter of SFSP

www.gpsfsp.org · 215-836-9780 · (f) 215-836-9783amccloskey@maguirehegarty.com

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