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One resource is FINRA’s “Understanding Professional Designations” site, which provides  

a snapshot description of more than 100 designations. The site is not comprehensive, and 

does not allow a comparison of the designations. But it’s a good place to start.

The proliferation of “senior adviser” certifications targeting elderly clients is a growing  

problem, according to the U.S. Consumer Financial Protection Bureau (CFPB). There  

were more than 50 such designations in use in 2013, with many of the titles practically  

identical. That’s confusing for investors, on top of the typically wide variance in training  

and education these professionals receive. 

If a financial professional tells you that he or she has a certain credential, ask some  

direct questions: 

•

  Who awarded you the credential?

•

  What are the training, ethical, and other requirements to qualify for this credential?

•

  Do you have to take a course and pass a test?

•

  Does the designation require a certain level of work experience or education?

•

  To maintain the designation, are you required to take refresher courses?

•

  How can I verify your standing with this organization?

As a reminder, investment advisory firms are required to provide their 

clients with a brochure about their employees in the Form ADV. If an 

employee claims to have a professional title, the brochure supplement must include  

an explanation of the minimum qualifications for the title. This is not the case with 

financial planning firms.

KeeP in MinD

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