Name Calling and Other Ugly Habits

Yesterday, we talked about the myriad new designations for the various workers in the financial industry. Apparently, a lot of complaints have been made against brokers who hold these titles.

FINRA is now compiling records against advisors who hold these new titles to see if any patterns exist. They are trying discover whether brokers use these titles as mere marketing tools designed to dazzle investors or whether the titles have any real educational value. Many of these titles come with training courses that show advisors how to sell to the various markets. With so many new titles out there (on top of the old ones), it is hard to tell what is credible and what isn't.

Regulators found the advisors using more than fifty different designations with a definite leaning toward the senior and retirement markets.

It remains to be seen what limitations FINRA will place on these new titles, but until you have a genuine idea of the education, background, and track record for an investment advisor, ask questions. Ask more questions. And, when you get the answers to those questions, ask more. It's your money and your responsibility to make sure the person you are entrusting it to is qualified to manage it for you.

Did I mention you should ask questions?