Forbes Firing Over Undisclosed $6 Million Payment Jolts Advisor Trust in Rankings
Updated
Updated · Wealth Management · Aug 20
Forbes Firing Over Undisclosed $6 Million Payment Jolts Advisor Trust in Rankings
2 articles · Updated · Wealth Management · Aug 20
Summary
$6 million paid privately by Shook Research founder RJ Shook to former Forbes editor Randall Lane has left advisors questioning the credibility of Forbes wealth rankings, even though no evidence has emerged that list results were altered.
Forbes and Shook both said the money was a personal gift unrelated to rankings, with Shook's outside counsel finding no link to the selection process and Forbes saying the payment did not involve teams overseeing research or editorial governance.
Several advisors who appeared on Forbes lists said the secrecy damaged trust and prestige around the rankings, though some still described the screening process as rigorous and said they would keep participating.
2020 SEC marketing rules let advisors cite third-party rankings only if they reasonably believe the ratings were prepared fairly, and compliance lawyers said the controversy could trigger closer scrutiny of how firms use such accolades in advertising.
Forbes and Shook have built a lucrative decade-long rankings business around advisor lists, marketing collateral and events, making the episode a broader test of how much investors and regulators should rely on industry awards.