When Words Become More Than Just Words: A Lesson in Client-First Ethics

Words matter. As FAs, expressing ourselves with concission and brevity should always be our goal. Corporate slogans usually only get the brevity part correct and often leave one wondering if the company is expressing what they believe or what they want us to do or believe. “I’m Lovin it,” “Because You’re Worth It” “Betcha Can’t Eat Just One.” These are 3 examples of tag lines that have alway left me a bit confused. McDonalds, Loreal and Lay’s Potato chips

The Plaque That Planted a Seed

Early in my career at Merrill Lynch, I’d walk into the office each day, passing by a small plaque. Engraved on it were the words of Charlie Merrill: “The interests of our customers must always come first.” For years, these were just words to me – a nice corporate slogan, but not much more.

## The IPO That Changed Everything

Fast forward to the 1980s. I was heavily involved in an IPO for a mortgage REIT. Confident in its potential, I recommended it to many of my clients. When the first dividend was paid, something didn’t add up. By my calculations, my clients had been collectively shortchanged between $30,000 to $40,000 in dividend payments.

## The Moment of Truth

I raised the issue, pushing it up the chain of command. Eventually, I found myself face-to-face with Win Smith, son of one of the company’s founders and the executive overseeing most of Merrill Lynch’s East Coast offices.

Walking into that meeting, I thought my career was over. Instead, I received a lesson I’ll never forget.

## The $1.8 Million Decision

Win informed me that not only were my clients’ accounts being credited, but so were all affected accounts across the firm. The total cost? Around $1.8 million.

In that moment, Charlie Merrill’s words on that small plaque came rushing back to me. They were no longer just a slogan – they were a guiding principle that the company was willing to stand behind, even at great cost.

## The Lasting Impact

From that day forward, those words took on new meaning. They became a compass for my decision-making, a constant reminder that putting clients first isn’t just good ethics – it’s good business.

## A Challenge to All Financial Advisors

As financial advisors, we’re entrusted with more than just our clients’ money – we’re entrusted with their dreams, their futures, their peace of mind. The next time you see a corporate value statement or ethics policy, I challenge you to look beyond the words. Ask yourself:

– How can I embody these principles in my daily work?

– Am I truly putting my clients’ interests first in every decision I make?

– What would I do if upholding these values came at a significant cost?

Remember, in our profession, words have the power to shape careers, build trust, and change lives. Let’s ensure our actions always speak as loudly as the words we profess to follow.

Financial Advisor, Merrill Lynch, Client First Approach, Corporate Ethics Investment Management

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What words guide your practice? I’d love to hear your thoughts and experiences in the comments below.