Don’t Fall for Phony Titles Used by Unscrupulous Advisors

If you’re considering engaging a financial advisor, be wary of shady tactics some are using to sell financial products to elderly investors. 

The New York Times reported Sept. 6 on a hearing of the Senate Special Committee on Aging at which senators asked regulators and executives about sales agents who use titles like “certified senior adviser” and “certified elder planning specialist” to sell financial advice and complicated insurance products. 

Christopher Cox, the chairman of the Securities and Exchange Commission, and state regulators said they expected soon to propose guidelines prohibiting sales agents from using titles that imply an expertise in financial issues for older Americans, when that designation has little or no value. 

Titles such as “registered financial gerontologist,” “certified retirement financial adviser” and “certified senior adviser” can be earned quickly from for-profit businesses. They sound similar to established credentials, like certified financial planner, that require far more study, as well as deep background checks.

Last revised August 2007