Have you ever found yourself in a situation with a client or another practitioner where you were contemplating a course of action that you were conflicted on, a course of action where you had to choose your road to travel down, and so you made a call or two to people you know for their thoughts?

Having been an industry instructor for many years and specifically being an ethics instructor, I often have members approaching me to ask my thoughts on a questionable course of action they are considering.

Sometimes we are clearly on the wrong track and sometimes we are on the right track, and there are telltale signs of each.

The wrong track

Much of the time, it quickly becomes evident that they are really just hoping for my blessing or even a simple word of encouragement that they are on the right track, that their considered course of action is perfectly acceptable, or at least that they are justified in considering it.

There’s generally only one problem: it usually isn’t and they usually aren’t.

The first thing we often do in these situations is ask a few friends for their opinion on the matter. And the first clue that we are heading down the wrong road is when our friends question our course of action. So, we seek the advice of other friends.

When that doesn’t work, we advance to the second level: calling someone we know in the industry who has more experience or knowledge of such areas. This is where I often get a call, and, invariably, this is where the third level of warning signs emerge.

When I do get calls on this, instead of asking my opinion, the other person usually tells me the situation from the perspective of “Here’s why I’m justified in doing this course of action”, clearly looking for me to nod appreciatively and agree.

Other times, they will try to gently lead me in the direction they are looking to have justified. Unfortunately, I am often unable to do so and have to offer a word of caution. This is usually where I offer my friend the proper course of action for assistance – and where the conversation can quickly fade away.

The right track

No matter how much we feel justified in taking a questionable course of action, the very fact that it is questionable should be our warning to seek proper assistance. So, this begs the question, what is proper assistance? What is the proper course of action?

Check with your broker, and/or check with your regulatory body. Our friends aren’t liable for any erroneous advice they give us and that we use – we are. Additionally, our friends may be biased in our favour or may not want to get into a disagreement with us, especially if they detect we are looking for a specific answer.

Our brokers are liable for erroneous advice they give us, so it is more likely to be better advice. They know these situations and they know how to avoid trouble.

Our regulatory bodies also know situations and they clearly know the legislation. Any advice they provide is likely to be good advice. Just remember that some regulatory bodies may not give advice other than “See rule number…” or “Check with your broker”.

There is only one problem with the advice our brokers and our regulatory bodies give us: it may not be the answer we were hoping for. For this reason, when I advise people to check with their broker or their regulatory body, this is where the conversation often fades away.

But it is the answer we will eventually come to realize was the right one all along. The words from Robert Frost’s poem, The Road Not Taken, come to mind here:

Two roads diverged in a wood, and I—
I took the one less traveled by,
And that has made all the difference.

Which road will you take?