The Securities and Exchange Commission (SEC) is actively reviewing advisers' ADV forms for suspect information used to falsely tout investment expertise. Some of the areas the SEC will be looking at are education, business, and charters/certifications. The credentials listed will be sent out for accuracy - background checks will be performed on an individual's suspect information. The SEC is also using the internet and other filings to verify a registered individual's background information.
The following are examples of some credentials advisers might be falsely alleging they have earned to convince investors to give them business:
-Certified Financial Planner: the Certified Financial Planner (CFP) designation is a professional certification for financial planners conferred by the Certified Financial Planner Board of Standards (CFP Board). To receive authorization to use the designation, the candidate must meet education (minimum bachelor's degree), examination (10-hour multiple choice exam divided into 3 days), work experience (extensive experience in the financial planning field), ethics requirements, and pay an ongoing certification fee. CFPs must also complete continuing education requirements.
-Chartered Financial Analyst: the CFA charter is a qualification for finance and investment professionals, particularly in the fields of investment management and financial analysis of stocks, bonds and their derivative assets. The program focuses on portfolio management and financial analysis, and provides knowledge of other areas of finance. CFA candidates must past three exams and complete 48 months of qualified work experience to earn the CFA charter.
-University Honors: graduates attaining a grade point average (GPA) of 3.5 to 3.8 from an accredited college or university earn "cum laude" honors. Graduates attaining a GPA above 3.8 to 3.89 earn "magna cum laude" honors. The highest honors, or "summa cum laude" honors, are earned by graduates attaining a GPA of 3.9 to 4.0.
Although inconsistent disclosures of experience have not yet resulted in enforcement actions, the potential for embarrassment is certainly imminent. Investors are encouraged to personally verify their adviser's background and credentials if he or she is touting one or more of the aforementioned educational achievements or certifications. This preventative measure may help avoid significant losses if an investor plans on relying on an adviser's expertise, which may turn out to be completely bogus.
Have you suffered losses resulting from reliance on you adviser's false expertise? If so, call Robert Pearce at the Law Offices of Robert Wayne Pearce, P.A. for a free consultation.
The most important of investors' rights is the right to be informed! This Investors' Rights blog post is by the Law Offices of Robert Wayne Pearce, P.A., located in Boca Raton, Florida. For over 30 years, Attorney Pearce has tried, arbitrated, and mediated hundreds of disputes involving complex securities, commodities and investment law issues. The lawyers at our law firm are devoted to protecting investors' rights throughout the United States and internationally! Please visit our website, www.secatty.com, post a comment, call (800) 732-2889, or email Mr. Pearce at pearce@rwpearce.com for answers to any of your questions about this blog post and/or any related matter.
The following are examples of some credentials advisers might be falsely alleging they have earned to convince investors to give them business:
-Certified Financial Planner: the Certified Financial Planner (CFP) designation is a professional certification for financial planners conferred by the Certified Financial Planner Board of Standards (CFP Board). To receive authorization to use the designation, the candidate must meet education (minimum bachelor's degree), examination (10-hour multiple choice exam divided into 3 days), work experience (extensive experience in the financial planning field), ethics requirements, and pay an ongoing certification fee. CFPs must also complete continuing education requirements.
-Chartered Financial Analyst: the CFA charter is a qualification for finance and investment professionals, particularly in the fields of investment management and financial analysis of stocks, bonds and their derivative assets. The program focuses on portfolio management and financial analysis, and provides knowledge of other areas of finance. CFA candidates must past three exams and complete 48 months of qualified work experience to earn the CFA charter.
-University Honors: graduates attaining a grade point average (GPA) of 3.5 to 3.8 from an accredited college or university earn "cum laude" honors. Graduates attaining a GPA above 3.8 to 3.89 earn "magna cum laude" honors. The highest honors, or "summa cum laude" honors, are earned by graduates attaining a GPA of 3.9 to 4.0.
Although inconsistent disclosures of experience have not yet resulted in enforcement actions, the potential for embarrassment is certainly imminent. Investors are encouraged to personally verify their adviser's background and credentials if he or she is touting one or more of the aforementioned educational achievements or certifications. This preventative measure may help avoid significant losses if an investor plans on relying on an adviser's expertise, which may turn out to be completely bogus.
Have you suffered losses resulting from reliance on you adviser's false expertise? If so, call Robert Pearce at the Law Offices of Robert Wayne Pearce, P.A. for a free consultation.
The most important of investors' rights is the right to be informed! This Investors' Rights blog post is by the Law Offices of Robert Wayne Pearce, P.A., located in Boca Raton, Florida. For over 30 years, Attorney Pearce has tried, arbitrated, and mediated hundreds of disputes involving complex securities, commodities and investment law issues. The lawyers at our law firm are devoted to protecting investors' rights throughout the United States and internationally! Please visit our website, www.secatty.com, post a comment, call (800) 732-2889, or email Mr. Pearce at pearce@rwpearce.com for answers to any of your questions about this blog post and/or any related matter.
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