Conservative Investment Management Pays for This FirmWritten by Tony Novak
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of some very popular names in financial services industry. But one of largest issuer’s of variable annuities, American Skandia, has been able to avoid this financial risk through use of unique but fundamentally sound investment management and accounting. In other words, by setting up automated systems to automatically manage money more conservatively during periods of declining stock prices, American Skandia has significantly outmaneuvered market and avoided risk for its investors.American Skandia is one of few investment companies that offers a no-load account without investment commissions through independent investment advisers. It own distribution costs are minimal because company does not maintain an internal sales force, but relies instead on recommendations of independent financial advisers.
Tony Novak is an independent writer and financial adviser in Narberth PA who provides OnlineAdviser services through MedSave.com and FreedomBenefits.org
| | Insurance Regulators Focus on Abusive Sales PracticesWritten by Tony Novak
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to result in a financial recovery if you have suffered a loss from an improper sales practice. An apparent third option – reporting problem to personnel in your investment company – is unlikely to result in any substantive corrective action because automatic “denial of wrongdoing” mentality is deeply imbedded in financial services industry. Investment representatives are routinely restricted from admitting wrongdoing or negotiating solutions with customers. These issues must be referred to firm’s legal department where individual is unlikely to make any progress without legal representation anyway. So this third option really is not really a separate strategy after all.It might be smart to get an early opinion of an independent financial adviser and attorney in any case. Attorneys who handle these legal issues typically work in tandem with a financial adviser to identify, document and then redress problem areas. Some of these problem issues are addressed as class action claims, where others are handled on an individual case-by-case basis. It is usually necessary to demonstrate a realized financial loss or damage in order to successfully negotiate a financial settlement.
Tony Novak is an independent writer and financial adviser in Narberth PA who who has consulted as an expert witness in sales practice disputes.
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