You might even not be permitted to use LIFA or other superficial designations.
-------------------------------------
State has say in what financial advisers call themselvesDesignations for investment advisers
Steve Jordon
WORLD-HERALD STAFF WRITER
531 words
22 June 2007
Omaha World-Herald
Iowa;Metro;Midlands;Nebraska;Sunrise
01D
English
� 2007 Omaha World-Herald. Provided by ProQuest Information and Learning. All Rights Reserved.
A Nebraska government official is sorting through the wide range of professional designations used by investment advisers, with the goal of weeding out those that can mislead senior citizens and others
So far, Jack Herstein of the Nebraska Department of Banking and Finance has approved eight designations that broker-dealer agents and investment advisers can use on their business cards, letterheads and other advertising
Herstein, deputy director of the department's securities bureau, is reviewing a dozen other requests for approval. He estimates there are 50 or more other professional designation groups that haven't applied for approval
The issue came up during the past year when Nebraskans were invited to seminars -- often including free lunches or dinners -- by people who advertised themselves as investment advisers and who listed several sets of initials after their names
Many such seminars were aimed at senior citizens, who could be misled by the initials about the knowledge and experience that a salesperson has, Herstein said Wednesday
"We want the designations to mean something legitimate, so it's not just a marketing scheme," he said
Regulators from some other states have asked about Nebraska's approval process because they are wrestling with the same problem, he said. Massachusetts adopted a set of rules that prohibits advisers from using unapproved designations when giving advice or services to seniors
To gain the Nebraska department's approval, Herstein said, a certifying group must have substantial educational requirements, an ethics code, experience standards, continuing education rules and other features that enhance an adviser's professional qualifications
The amount of study and experience needed for designations varies widely, from several years of college-level study and extensive testing to merely attending a few seminars and paying a membership fee to an association
Until now, the state hasn't had an approval process for adviser designations, although it endorses educational programs designed to help people qualify for state licenses for financial professions
Herstein said he sent notices to the state's licensed brokerdealer agents and investment advisers. "A lot of them were glad that we did this. They thought it was getting out of control, too, that there are too many designations."
Once the process is complete, he said, a person could be fined or have his or her license suspended or revoked for using designations that aren't approved. While the department doesn't regulate insurance agents, many of the same people also hold licenses as broker-dealer agents and financial advisers
Herstein said he plans to complete his review this summer, notify the groups that have applied for approval and post the approved designations on the department's Internet Web site
He said he will not list the designations that are rejected or those that don't apply for approval.
Designations for investment advisers Designations approved so far by the Nebraska Department of Banking and Finance: Certified financial planner, CFP Chartered financial consultant, ChFC Personal financial specialist, PFS Chartered financial analyst, CFA Chartered investment counselor, CIC Chartered life underwriter, CLU Life Underwriter Training Council fellow, LUTCF Financial services specialist, FSS