Since 2016, 125 individuals have filed grievances about Fisher Investments and its aggressive sales methods with the Federal Trade Commission, according to a recent Bloomberg report. The firm’s tactics include marketing phone calls, spam emails and even impersonations of supposed friends, co-workers and government officials.
“I have emailed them as well and asked them to stop. It just seems to get worse,” one would-be client wrote to the FTC, the news report said. “It is way beyond harassment,” said another. Seven complaints were categorized by the FTC as “calls pretending to be government, businesses or family and friend.”
The investment firm — founded and led by Ken Fisher, who recently made crude remarks at an industry conference — is currently in the hot seat, with some $3.9 billion in client redemptions over the past few weeks.
While Vanguard, Fidelity and Charles Schwab had more complaints than Fisher’s firm, Bloomberg says, these three firms manage trillions in client assets versus Fisher’s $115 billion.
In an interview with ThinkAdvisor before he made the lewd comments, Fisher said the firm spends 6% of revenue on marketing and advertising each year. The firm’s 12-month sales were reported to be about about $1 billion as of February 2019 — which means an estimated marketing budget of $60 million.
On Friday, the firm dipped into that budget and ran full-page ads in The New York Times, THe Wall Street Journal and The Dallas Morning News, showcasing women who work for the firm; several PR consultants said the approach is unlikely to help its image or stem the loss of assets.
Could FTC Take Action?
Fisher Investments has not received communications from the FTC regarding do-not-call or other cases, the report adds.
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Now, let's delve into the concepts mentioned in the provided article about Fisher Investments:
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Number of Grievances to the Federal Trade Commission (FTC) since 2016: The article states that 125 individuals have filed grievances with the FTC regarding Fisher Investments' aggressive sales methods. This suggests a pattern of complaints against the firm, indicating potential concerns with its business practices.
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Fisher Investments' Sales Tactics: The firm is accused of employing aggressive sales methods, including marketing phone calls, spam emails, and impersonations of friends, co-workers, and government officials. This highlights the ethical and possibly legal issues surrounding Fisher Investments' approach to client acquisition.
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Nature of Complaints: The grievances include complaints about the persistence of marketing efforts, with one prospective client expressing that the situation seems to worsen despite attempts to stop it. Some complaints are characterized as "calls pretending to be government, businesses, or family and friend," suggesting deceptive practices by the firm.
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Client Redemptions: Fisher Investments is reportedly facing significant client redemptions, with approximately $3.9 billion in redemptions over the past few weeks. This signals a substantial loss of investor confidence and trust in the firm.
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Comparison with Other Financial Firms: While Fisher Investments had fewer complaints than Vanguard, Fidelity, and Charles Schwab, these three firms manage trillions in client assets compared to Fisher's $115 billion. This information provides context to the scale of the issue relative to the size of the firm.
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Ken Fisher's Behavior: The founder and leader of Fisher Investments, Ken Fisher, recently made crude remarks at an industry conference. This controversial behavior may contribute to the negative perception of the firm and potentially impact its reputation.
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Marketing Budget: Fisher Investments allocates approximately 6% of its revenue to marketing and advertising annually. With reported 12-month sales of about $1 billion as of February 2019, this translates to an estimated marketing budget of $60 million. This information sheds light on the financial resources dedicated to client acquisition efforts.
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Advertisem*nt Response: In response to the crisis, Fisher Investments ran full-page ads in prominent newspapers, featuring women who work for the firm. However, several PR consultants are skeptical about the effectiveness of this approach in improving the firm's image or preventing further asset losses.
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FTC Communication: The article notes that Fisher Investments has not received communications from the FTC regarding do-not-call or other cases. This information suggests that, as of the report, the FTC may not have taken formal action against the firm, leaving the possibility open for future regulatory scrutiny.
