Is it a conflict of interest for FAs to be "social media influencers"? What are the costs when they spend more time promoting themselves than helping their clients?
An iFAST webinar mentioned the difference between FAs focusing on "sales" rather than "advisory"
The conflict of interest arises when you are a FA for eg Prudential and you go on to be an analyst in another rival company eg AIA. Therefore in this case there is no conflict of interest between being a social media influencer and being an FA. However there is a potential downside to it. Being a famous/good influencer does not mean being a good FA. People may choose to buy from you initially but if you place too much emphasis on promoting yourself and neglect your clients, or do not service them well, eventually people will not refer you to their friends or others and may even leave negative reviews on your posts that you are not doing a good job. It is important to be able to balance between the two as in the FA industry, the end game is referrals. You get your business from people who refer their friends or family members to you and if they are not satisfied with your service in the place first, it does not matter how famous you are or how influential you are, they will not refer their loved ones to you.
The conflict of interest arises when you are a FA for eg Prudential and you go on to be an analyst in another rival company eg AIA. Therefore in this case there is no conflict of interest between being a social media influencer and being an FA. However there is a potential downside to it. Being a famous/good influencer does not mean being a good FA. People may choose to buy from you initially but if you place too much emphasis on promoting yourself and neglect your clients, or do not service them well, eventually people will not refer you to their friends or others and may even leave negative reviews on your posts that you are not doing a good job. It is important to be able to balance between the two as in the FA industry, the end game is referrals. You get your business from people who refer their friends or family members to you and if they are not satisfied with your service in the place first, it does not matter how famous you are or how influential you are, they will not refer their loved ones to you.