With a major retirement crisis looming, the time for the financial services industry to figure things out is now. Lots of hard-working people are angry and scared. There is so much more the industry can do to help.

Here are my suggestions:

1. Standardize Titles

It should not be the client’s job to figure out who’s responsible and who’s not. Why are there 253 financial designations in FINRA’s database when FINRA clearly states that it doesn’t approve or endorse any of them?

At the very least, there needs to be a national standard for the two most common titles: financial advisor and financial planner. As it is, anyone can use these titles regardless of their education and training level1. Clients are handing over their entire life savings to these people.

Meanwhile, we won’t let someone fix an ingrown toenail without the proper credentials. How crazy is that? We’ve got to stop this free-for-all.

2. Shift From Selling to Advising

The industry needs to stop thinking of being a financial advisor as a sales job. The days of the stockbroker are gone. Clients want and need more holistic advice. Therefore, if the type of advice is changing, the person giving the advice must also change accordingly.

Someone whose main skill is sales is probably not the best advisor. Research shows that clients desire a long-term relationship with their advisor and a financial plan for all aspects of their life. They don’t want another product.

Accountants and lawyers aren’t cold-calling people, so why in the world are we?

3. Promote Behavioral Finance

Human beings are emotional creatures, yet the financial services industry is reluctant to acknowledge this. Many advisors keep rolling out the graphs and charts, not realizing that people don’t make financial decisions based on graphs and charts. Many advisors are still more comfortable providing spreadsheets than empathy.

4. Stop Explaining Everything

If my doctor explained everything that was going to happen during my surgery, I never would have had surgery. It would have scared the knickers off me. I don’t need to go to medical school before I have an operation.

Likewise, when you visit your CPA, they don’t show you the tax law. Obviously, it’s important that clients understand their portfolios and the planning that’s being done, but knowing the nuances of portfolio management and financial mathematics should not be the client’s responsibility.

5. Insist on Fiduciary

The fiduciary rule requires that financial professionals prioritize the client’s needs over their own.

Duh! Doctors take the Hippocratic oath and pledge to do no harm. While your physical health is important, so is your financial health. Anyone who tells you what to do with your money should be required to be a fiduciary. While it is a requirement for many (like CFPs), I believe it should be a requirement for all. It should not be one more thing a client has to figure out.

It is an honor and a privilege to work in this industry. I love my job and the opportunity it affords me to help people. But the need for these services is growing so fast that the industry and regulators can’t keep pace. We need to work toward one consistent set of rules, regulations, and guidelines because that’s what’s in the client’s best interest.