728_90
default avatar
Welcome to the site! Login or Signup below.
|
||
Logout|My Dashboard
960_30
code (for paragraphs 3 & 4 from custom.newzware.ajax.utl

For any of these certifications and designations, you should know what each letter stands for, but you also need to understand the education and experience behind the letters. Some designations have extensive requirements that involve months or years of work, while others can be earned in a day.

Here are eight questions you should ask to fully evaluate a financial advisor’s credentials:

8 Questions to Ask About a Financial Advisor's Certifications

Print
Font Size:
Default font size
Larger font size
300_250

Posted: Friday, March 15, 2019 12:00 am

(StatePoint) Understanding abbreviations is essential, whether you’re texting “LOL” to a friend or asking guests to “RSVP” to a party. In a professional setting, they can provide useful information about an individual’s services and qualifications.

Those used in the financial services industry can be particularly difficult to decode. The Financial Industry Regulatory Authority has identified nearly 200 certifications and designations for financial advisors alone.

For any of these certifications and designations, you should know what each letter stands for, but you also need to understand the education and experience behind the letters. Some designations have extensive requirements that involve months or years of work, while others can be earned in a day.

Here are eight questions you should ask to fully evaluate a financial advisor’s credentials:

1. What educational requirements, both qualifying and ongoing, has the professional met?

2. How many years of experience does the advisor have within the profession?

3. What is the advisor’s professional standing, conduct and character?

4. Has the professional’s competence been assessed through an exam or other type of measurement?

5. What are the professional’s obligations to you, with regard to disclosing conflicts of interest, compensation and terms of engagement?

6. Has the professional committed to putting your financial interests ahead of his or her own?

7. How is the professional regulated or supervised?

8. What consequences does the professional face if he or she is found guilty of malpractice?

If you need financial planning assistance, you can help make sure you’re getting a well-qualified individual subject to high ethical standards when you look for the CFP certification, which stands for Certified Financial Planner professional.

If you ask these eight questions about CFP professionals, you’d learn that they have to complete a comprehensive financial planning program and hold a bachelor’s degree or higher from an accredited college or university, in addition to meeting continuing education requirements. They must also pass a six-hour exam that tests their ability to apply financial planning knowledge to real-life situations and must have at least two to three years of professional financial planning experience.

Developed by the non-profit CFP Board and certified by the International Organization for Standardization, the CFP professional code of ethics and practice standards require those with this certification to provide financial planning in a client’s best interests. Those found to have violated these standards can permanently lose their certification.

When evaluating a financial advisor’s qualifications, understanding the acronyms and certifications in the industry, and asking the right questions, can help you determine the extent of a financial advisor’s expertise and help ensure you are working with a qualified professional.

*****

Photo Credit: (c) sdecoret/stock.Adobe.com

  • Discuss
468_60

Rules of Conduct

  • 1 Keep it Clean. Please avoid obscene, vulgar, lewd, racist or sexually-oriented language.
  • 2 Don't Threaten or Abuse. Threats of harming another person will not be tolerated. AND PLEASE TURN OFF CAPS LOCK.
  • 3 Be Truthful. Don't knowingly lie about anyone or anything.
  • 4 Be Nice. No racism, sexism or any sort of -ism that is degrading to another person.
  • 5 Be Proactive. Use the 'Report' link on each comment to let us know of abusive posts.
  • 6 Share with Us. We'd love to hear eyewitness accounts, the history behind an article.

Welcome to the discussion.

300_250
300_600
120_90
120_90
728_90 200_90