"Senior Specialist" and Similar Financial Credentials Lead to Confusion

Financial title designations like "senior specialist" and nearly 100 others may be a marketing ploy to gain trust of older investors. Investment fraud attorney David Meyer explains the danger in today's trend.
 
COLUMBUS, Ohio - May 1, 2013 - PRLog -- Consumers Confused by Misleading Senior Designations, Says CFPB

Financial credentials (http://www.investorclaims.com/library/should-you-trust-your-advisers-credentials-regulators-say-maybe-not.cfm) are a way advisers can market their expertise to the investors who most need their services. In recent years, however, new credentials have arisen that enable unscrupulous advisers and financial professionals to target older Americans and sell them inappropriate and/or fraudulent products and services.

Of the nearly 100 financial designations (http://www.investorclaims.com/library/investment-fraud-claims-the-truth-about-financial-designations.cfm) currently in use, this is particularly true of “senior specialist” designations (http://www.investorclaims.com/library/what-does-a-senior-specialist-designation-really-mean-find-out-here.cfm). Though they sound legitimate, these designations are often nothing more than a marketing ploy used to gain the trust of older investors.

Some organizations that grant the titles do have strict qualification requirements, but many do not. To make matters worse, most senior investors can’t tell the difference.

“These designations imply special training and experience in providing financial advice to seniors,” wrote Consumer Financial Protection Bureau Director Richard Cordray in a recent report.

“If well grounded, they can provide a sound basis for recommending financial products to help consumers prepare for and maintain a secure retirement. In preparing the enclosed report, however, the Office for Older Americans heard frequently from industry representatives, state and federal regulators, and consumer organizations that older consumers may be confused or misled by financial advisers touting senior designations.”

The 62-page report, which was prepared for Congress, highlights 50 confusing and misleading senior designations – some of which require nothing more than an application (and presumably a fee). According to the Bureau, these designations are “extremely confusing” for consumers, particularly because the titles and acronyms for some designations were nearly identical to others.

“Every senior designation is different, and there is a very wide range in their characteristics,” stated the Bureau in its report. “For example, there are differences regarding training requirements, qualifying examinations, continuing education requirements, oversight by the conferring organization, complaint procedures for aggrieved clients, and accreditation. Moreover, the presence, depth and rigor of these components vary widely among designations.

For example, Certified Estate Planners (CEP), Chartered Estate Planning Practitioners (CEPP), and Certified Estate and Trust Specialists (CES) are different designations conferred by different organizations, with different training requirements, yet the similarity of these titles may lead consumers to believe each possess similar qualifications and expertise.”

Other misleading or illegitimate designations highlighted in the Consumer Financial Protection Bureau's report included the Accredited Retirement Advisor (ARA) designation, the Certified Healthcare Financial Professional (CHFP) designation, and the Registered Financial Planner (RFP) designation.

According to the Bureau, these misleading designations are often combined with “free lunch” seminars (http://www.investorclaims.com/library/is-there-ever-reall...) and workshops to lure unsuspecting seniors into scams. A recent SEC, FINRA, and NASAA joint sweep of 110 firms offering such seminars revealed that many touted the financial expertise of the adviser hosting the event in a way that was misleading. For example:

Many presenters called themselves “Certified Senior Advisers,” “Elder Care Asset Protection Specialists,” and/or “Chartered Retirement Planning Counselors.” All of these titles sound impressive, but according to the examiners, “there is no regulatory qualification or registration that recognizes such expertise [emphasis added].”

Because of the wide-sweeping confusion these titles are creating, many regulators, including FINRA, have recommended that lawmakers and/or brokerage firms themselves prohibit the use of specious designations that do not require a rigorous curriculum, continuing education, demonstrable experience, and an emphasis on ethics. In the report, the Bureau noted that state and federal regulations on the credentials would help protect consumers shopping for senior financial expertise.

Let’s hope lawmakers soon begin to take these recommendations seriously. For now, seniors can protect themselves by checking out an adviser’s qualifications (http://www.investorclaims.com/news/finra-s-brokercheck-up...) before parting with any funds.

About our law firm:

The law firm of Meyer Wilson represents individuals across the country who have been harmed by investment fraud. All of our cases are handled on a contingency fee basis and we never request a retainer of any kind. Contact us toll-free at 1-866-827-6537 for more information or complete the online form on the top of this page and we will respond promptly.

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