Monitoring Money Managers Lack of Standards Makes It Easy for Anyone to Become a Financial Adviser

By Basch, Mark | The Florida Times Union, December 22, 1996 | Go to article overview

Monitoring Money Managers Lack of Standards Makes It Easy for Anyone to Become a Financial Adviser


Basch, Mark, The Florida Times Union


If you're looking for financial advice, there are lots of places

to turn. You can read financial publications, watch financial

television shows or seek personal advice from the estimated

150,000 professional financial advisers in the United States.

The problem is, how do you know the person giving you advice

knows what he or she is talking about? Although financial

advisers are required to be licensed, in many cases the advisers

don't have to demonstrate any competency in order to get the

license.

"I think, without question, it is more difficult to become a

licensed beautician than a licensed professional financial

planner or financial adviser," said Mark Griffin, president of

the North American Securities Administrators Association, a

coalition of state securities regulators.

There are designations such as Certified Financial Planner, or

CFP, that are earned through stringent educational and testing

requirements. But some professional advisers go through no

testing at all.

For example, to register with the federal Securities and

Exchange Commission as an investment adviser, all you have to do

is send in a form that basically assures the government that you

have never committed any securities violations. There isn't even

a fee required.

"The federal level has basically concluded, that's not our

job" to test financial advisers for competency, said Robert P.

Goss, executive director of the Certified Financial Planner Board

of Standards in Denver, Colo.

Don Saxon, director of the Florida Division of Securities,

said investment advisers in Florida do have to take a test that

demonstrates knowledge of financial markets in order to get a

license.

But state regulators across the country are taking action to

ensure that all U.S. financial professionals meet some minimum

standards.

The North American Securities Administrators Association is

working on a standardized competency examination that would be

administered individually by each state, but would ensure that

all financial professionals meet some minimum standard before

giving out financial advice.

Griffin, who is also director of Utah's securities division,

said he hopes this testing system will be in place a year from

now. "We feel there needs to be a floor" level of competency, he

said.

A standards test may also clear up confusion among consumers

about various professional designations that financial advisers

carry.

There are currently 16 associations awarding professional

financial designations, ranging from the well-known Certified

Public Accountant to the more obscure Accredited Asset Management

Specialist.

Those associations require members to pass tests to earn the

designations, but consumers generally have no idea about the

difficulty of those tests. A government-administered exam would

give consumers a better basis for judging their financial

adviser's competency. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Monitoring Money Managers Lack of Standards Makes It Easy for Anyone to Become a Financial Adviser
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Author Advanced search

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.