Accountability has quickly become the watchword of Wall Street these days. Everyone—investors, regulators, the media, even advisors—wants to assign blame for the struggles of the economy and markets.

At the American Bar Association's annual convention recently held in New York City, Linda D. Fienberg, who heads arbitration for FINRA, discussed the proposed rule to have firms report disputes on U4/U5 forms even when the advisor hasn't been named by the complaining investor. Under the proposal, if the advisor or broker can be identified by the firm, then it is obligated to report it, Fienberg explained.

Karen Tyler, president of NASAA, the organization of state securities regulators, said, "We are very pleased that this proposed rule is going through [for consideration by the Securities and Exchange Commission.]"

But Beverly Joe Slaughter, a lawyer for Wachovia, raised this concern: "I have to say, if you have a financial advisor and there's ultimately no proof, there are consequences."

What if an advisor who really did nothing wrong gets fired and has to fight to get his or her public record cleaned up? "It's very difficult for these financial advisors to get other employment in this economic climate," Slaughter noted. "I think disclosure is best when it's fair and accurate."

Even Fienberg said, "I do have concerns when someone has a vendetta." A broker may have no recourse except a defamation claim. That costs time and money. But she believes that this is still the right course of action.

In these tumultuous economic times, when investors and their advisors alike are losing money, claims will skyrocket. New arbitration cases are up 28% through June of this year compared with the same period last year, according to FINRA.

But even though your clients may see some of their wealth diminish, that does not necessarily mean that you will end up in an arbitration battle. You have to take steps to avoid that outcome. When the situation erodes to that point, no one wins—not you, not your firm and not your now-former client.

The key is communication during the bad times. That's a theme that gets repeated all throughout this month's issue. Consider what associate editor Helen Kearney discovered after interviewing several high-net-worth clients and their brokers in our cover story "Meet the Gen X Millionaires." The most important quality of the advisor-client relationship is trust. Gregg Marcus, who owns a mortgage lending business, told her that he trusts his Merrill Lynch advisor because he feels the advisor would make the same investments himself. "He's not pushing anything on me," Marcus says.

The best advisors are looking out for their clients, in both good times and bad. Dr. Alden Cass tells you what chart to course in "Be Captain Of Your Destiny." "Don't wait for the markets to get better to communicate with your clients or to start prospecting." Talk to your clients and better yet, listen to what they have to say. That's the way to an ideal business relationship and a healthier and wealthier practice.