Under the ethics microscope: Free-lunch seminars

February 18, 2010 at 07:00 PM

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According to a recent study by the AARP and the North American Securities Administrators Association (NASAA), the business of free-lunch marketing is once again at odds with ethical advising. The National Ethics Bureau reported some of the findings:

? Just more than 60 percent of respondents 55 years or older said they received a seminar invitation by mail. Of those, 57 percent say they've received five or more invitations in the last year.

? One in 10 respondents say they've attended a free-lunch seminar sometime in the last three years.

? 78 percent of seminar attendees expected the seminar to educate them about financial issues rather than try to sell them something (21 percent).

? Two out of five attendees (39 percent) said their presenter tried to sell them a financial product either during or after the event.

? Half of the attendees said the presenter asked them for personal contact data or for information about their finances.

? Two out of five attendees (46 percent) said their seminar presenter attempted to make a follow-up sales appointment.

? In regards to seminars that focused on annuities, researchers found that two-thirds (of presenters) didn't mention the surrender charges and tax penalties that may apply when annuities are surrendered early.

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