Financial Advisers Now Under The Scope

Some have called for stricter regulations of the methodsthat financial advisers use to report their credentials and their experienceworking with older Americans. Some “financial advisers use more than 50different credentials, some of which they can simply buy online.” The largedisparity between the different credentials have possibly left many older Americans confused, which could leave them open to abuse by unscrupulous advisers. For example,there is a considerable difference in the amount of education between an AccreditedRetirement Advisor and an Accredited Estate Planner.

A recent study would like for both state and federal agencies toset standards for the amount of education that a person can have before theycan obtain certain designations that would show that they have expertise in workingwith senior citizens. The report also recommended that both levels of agencies setrules of conduct for advisers on what designation advisers can claim.Furthermore, the report also asked for the creation of a tool that seniors wouldbe able to use to determine exactly the credentials of an adviser and thetraining he or she has received. 

See Emily Stephenson, Financial Advisers’ Credentials MisleadSeniors, Watchdog Says, Hartford Courant, Apr. 18, 2013.

Special thanks to Brian Cohan (Attorney at Law, Law Offices of Brian J. Cohan, P.C.) for bringing this article to my attention.