Suppose someone rear-ended you at a traffic light, and your insurance company refuses to pay, claiming that the appraiser (from their list) included items unrelated to the accident, and the garage (to which the insurance company referred you) performed excessive repairs. You need to sue the insurance company. Would you hire a lawyer whose fees are paid by the insurance company? Would you hire a lawyer who, in addition to being paid by the insurance company, also attended the insurance company's college and interned there? Does the very idea of hiring a lawyer like the one described above sound strange to you? Bizarre? The reality, of course, is even stranger, and most of us live with it peacefully simply out of a lack of awareness. Conflict of Interest - A conflict of interest is a situation where you are dealing with someone who appears to be helping you, but in reality, their own interests differ from yours. When I enter a clothing store, it's clear that the saleswoman's interest is different from mine. She wants to make a sale, regardless of what it is, while I want a shirt that will make me 1.90 meters tall and turn my eyes blue. Such a shirt doesn't exist yet, but any shirt I try on will usually be met with the remark - "It fits you perfectly." This is a situation where it's easy for us to identify the conflict of interest, and therefore the saleswoman's comments are taken with a grain of salt. In my case, there are strategies I employ in a clothing store:I'm asking my wife to buy me a shirt.I go to a store once every few years, find my size, and buy five shirts at once. An important principle in decision-making – if there's a game where your chances of success (in financial terms – expected value) are low, play it as little as possible.In the financial world, conflicts of interest are much harder to crack and much more damaging than in a clothing store, for example.Three commercials are running today by three different banks (they do tend to copy each other a bit, don't they?).Bank Leumi Trying to convince us that bankers (or) are not needed at all Mortgage advisors (In bank language) and that in the middle of a soccer game you can take out a mortgage.Irrespective of this article, if you are a banker, pay attention to what is happening around you. Banks have seen you as a burden for several years and will gradually try to reduce your numbers. My recommendation – Look for another job. Back to the article, bank Tapuachat Trying to convince us that all the information is with his consultants and that's where we should plan our future. To this end, they are even doing one of the most despicable things advertisers do: recruiting our nostalgia (in this case, the wonderful song "Elah"), to create a feeling of connection to the advertisement and better compliance with the advertisement's messages. Setting aside the melody, the beautiful cinematography, Dvir's wit, and the array of colorful characters, in practice, this is a classic example of a conflict of interest. You want to pay the bank as little as possible, while the banker is being instructed by the bank on how to make you pay as much as possible. He is measured by the price at which he sells you a mortgage and receives a bonus to his salary if you pay more.Bank Hapoalim is not holding back, and it too is now advertising its advisors who will know how to solve any issue.Think about it again. Suppose you wanted to sue Samsung because their refrigerator isn't working and they aren't honoring the warranty. Would you hire a lawyer whose salary is paid by Samsung? What about a lawyer whose salary is paid by Samsung, who set his training program as a lawyer, and even pays him a bonus on top of his base salary if he loses a case against you? So why wouldn't you hire a lawyer for a lawsuit with a maximum damage of, say, 10,000 shekels (the cost of the refrigerator) if the other side pays his salary, but when the damage could be half a million shekels, you're willing to trust a bank employee who meets all the criteria of that Samsung lawyer?How is it that you are willing to trust an agent Insurance Answering most of the definitions of a Samsung lawyer (the only difference is that the state conducts the qualifying exam and not the insurance company, and to the best of my knowledge there is no additional payment for losses in claims, only for selling additional policies, including) Policies that are unequivocally detrimental to the client).This conflict of interest is harder to identify for two reasons:In other fields, bank advisors actually have an interest similar to ours. For example, the investment advisor wants us to profit so that our investment portfolio grows, and we pay more fees. In other words, we have the same interest – growing the investment portfolio. Parenthetically, it should be noted that here too, because there is a commission as a percentage of the portfolio's volume and a commission for each transaction, the investment advisor sometimes has an incentive to generate many valueless transactions for us.On one hand, we are less skilled at purchasing a mortgage or insurance compared to buying a shirt. On the other hand, when the sum is large, people invest less thought into it. Professor noticed this behavior.' Parkinson's. When a decision is bigger than we're used to making, we become somewhat "numb" and let someone we perceive as an authority figure make the decision, without even checking their qualifications, motives, or experience (who has ever really asked a banker, regardless of their position, when they started in that role?). The bank has invested a lot in creating an image of a reliable and stable place (it's not for nothing that there's so much design in the branches). Sentences like Sure thing. The statement expressing the speaker's confidence that what follows a sentence in Hebrew is necessarily true/real is part of Western culture.About two years ago, an investment fund called Keren Or collapsed, and many investors lost their money. It happens. A side effect of this affair makes it very interesting. The fund's presenter was Shlomo Maoz, who is known as a media personality and star economist. Now there is The plaintiffs You are mistaken in your claim that the fact that he recommended the fund caused them to invest in it. To the best of my knowledge, it has never been claimed that a presenter has responsibility for the product they advertise. For example, can one sue Marlboro Man On the dangers of cigarettes? (The three models of "Marlboro Man" will rest in peace after dying of lung cancer). This lawsuit will be interesting regardless of its outcome. If the judge rules that the company is responsible, it will be a sensation in the advertising world. Celebrities and ordinary people will think ten times over about what products to advertise. I think that would be excellent. Even an opposite ruling, that the presenter in an advertisement has no responsibility for what they say, will be significant. Although it might be a declarative significance, the public might better understand the world of advertising and the reservations one should have when taking any recommendation from this world.What should be done to ensure you don't receive advice in a conflict of interest situation?In his book, behavioral economist Prof. Dan Ariely, who was himself the victim of a severe accident in his youth that severely burned large parts of his body and face, recounts that when he was hospitalized and it became apparent that half of his face would not grow stubble, one of the doctors recommended he get a tattoo of stubble on his face. He refused, and some time later discovered that the same doctor had written an article about the effect of stubble tattoos on the psychological state of injured patients. This means that conflicts of interest can arise in unexpected places and even with good intentions (I assume the doctor genuinely thought it might improve his psychological state).So, how should we act to neutralize external influences on the advice we receive? First of all, make an effort to avoid such influences. It's worth remembering that when there is an influence, it is sometimes on the subconscious of the advisor and therefore can also affect them if they are your childhood friend.If you are going to get advice on something And your advisor receives their salary from another party. Clearly, this is a big problem, and the advice doesn't deserve to be called advice at all. But mind you, even if the advisor is paid only by you. Does salary depend on the answer? What will the advisor give? If you go to a "real estate advisor" (broker), for example, and ask him about the advisability of investing in a particular apartment, when the advisor will only receive his fee if a deal is made. This is not good advice (as mentioned, even if it's your childhood friend) because the advisor's fee depends on him saying the deal is good for you. If you go to a mortgage advisor and his fee is a percentage of the mortgage you will take, what do you think his motivation will be to suggest you reduce the mortgage or recommend not taking out a mortgage at all because it's too large for you?Only go to an insurance advisor or a pension advisor who will not sell you any products as part of the consultation. Ensure that the payment is for the consultant's time and is completely independent of the consultant's answer. The exact same applies to Mortgage advisor. Please note, not a mortgage consultant but a finance consultant. If we call our consultant Mortgage consultant We are already dictating the requested solution (mortgage). WhileFinancial advisor There are supposed to be additional tools in his solutions arsenal – a loan from the Ministry of Defense for career soldiers, a loan from pension funds, or a clear statement that it is not advisable for you to take out a mortgage, or that you can purchase without a mortgage, and many other solutions. A consultant whose fee remains the same regardless of the answer they give. He's the advisor you need. —————————-He put his hand in the plate – did nothing. "Tamán Lazy "His hand to the dish, even to his mouth he will not bring it back" (Proverbs 19:24). This means to keep eating, no matter what is happening around you.