Halo Effect Bias
This happens when wealth advisors value a person, product or vendor's likable characteristics more than its substance. Halo bias gives more credence to project proposals when they are submitted by staff or vendors believed to be smart or articulate, even if the proposals are off base. RIAs do this when they select a portfolio management system and choose the vendor with the bigger brand name without critically comparing technology and features.
Self-Serving Bias
This happens when an advisor, facing the loss of a top employee, client or prospect, blames extenuating circumstances and external forces rather than him-