Once again: Don’t kill the messenger

In the fast-changing and complex financial advice business, developments of particular interest and importance to financial advisers can reflect negatively on some of the people, firms or products involved.

Our job at InvestmentNews is to report all the important news in this business fairly and accurately, even if some of what we report isn't particularly flattering.

I have used this column to write about this very sensitive issue, but it bears repeating because several readers and a few industry executives have recently called us out for writing “negative news.”

One reader sent me this note in an e-mail: “I just want you to know that your daily [news] is very negative and is constantly focusing on fines, compliance, etc. Most of us [advisers] are aware of the current adversarial environment, but being reminded of it constantly makes an adviser want to hide under his desk, rather than be enthused about business.”

Whether news of importance to advisers irks powerful regulators, product companies — including advertisers — or advisers themselves, InvestmentNews will be there to report it. Depending on what is happening, the news may enthuse, amuse or abuse certain individuals or companies, but the effect is in the mind of the reader; our intent is to inform.

Be that as it may, it appears to be a time- honored tradition — and human nature — to blame the messenger when bad news is delivered. Because we are the most well-read and most news-oriented messenger in our business, InvestmentNews is often blamed for pointing out bad things done by bad guys in the financial services industry.

At the same time, I receive a great deal of positive feedback from readers who say they appreciate that we tell it like it is. Many readers say they have come to rely on us for our honest and accurate news coverage.

One adviser with whom I spoke recently even said that our news reporting is “brave.”

Can the harsh light of news be unflattering in certain situations? Of course, but if you truly think that “bad news” coverage should be toned down, muzzled or given a positive spin, consider the times and places where that has taken place.

FREE PRESS

In societies where czars and commissars, despots and dictators didn't allow news of all types to be disseminated freely, most people didn't believe anything they read. Without free speech, such societies don't have economies that support too many advisers.

Fortunately, we are far from such a state.

Our nation is blessed with a culture, tradition and laws that support a free press. Still, there are those who dislike the “negativity” of the press.

In the case of InvestmentNews, some even think that our publication's editorial team harbors a secret agenda or a grudge against a particular firm or a specific financial product.

There is no agenda other than striving to provide readers with the most compelling and accurate news that affects the financial advisory business. Neither reporters nor editors are “out to get” companies, products or people.

If that were the case, they no longer would be working here.

At the same time, we don't try to put a nice face on situations that may not be so nice. That is the nature of news.

Opinions are something else, and those are found in specific places in InvestmentNews: in our editorials, Other Voices columns and here. Opinions don't appear in our news stories.

I will be the first to admit that the process by which InvestmentNews works isn't perfect. If we make a mistake in our news coverage or use faulty judgment in our opinion pieces, we will own up to it.

And we count on you to keep us on our toes. If you have an issue with a story or with our opinions, please contact me directly.

I have always encouraged reader interaction, and that offer stands.

Jim Pavia is the editor of –InvestmentNews.

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