Core Compliance Risk Management Update Profile – Financial Professional Titles: Did You Earn That?

At the end of each month, Core Compliance & Legal Services, Inc. (“Core Compliance”) publishes a Risk Management Update (RMU), an in-depth article written by one of our staff members on a currently relevant topic in compliance, securities, and investment industry. In late September 2013, Core Compliance released an RMU, written by Brooke Freitas, which details the proper use and verification of professional titles used by individuals in the financial industry.

Authorizing and maintaining accurate titles amongst members of a financial firm – parsing through those which have been achieved through licensing or accreditation, and those that have not – is an important task in assuring truthful representation of a member’s skills and a firm’s professional offerings. The RMU describes the meanings and certifications behind certain titles, such as Certified Financial Professional™ (“CFP®”), Certified Investment Management Analyst (“CIMA”), and Accredited Asset Management Specialist (“AAMS”), as well as discusses the difference between a professional title and a license, particularly as they pertain to registered investment advisers and broker-dealers. Beyond the potential concerns of misinformation on behalf of a financial professional or a firm, false titles or certifications included on social media or client communications can violate anti-fraud provisions – a move which can place firms or individuals under disciplinary action by regulatory bodies like FINRA and the SEC.

To read a PDF of the article “Financial Professional Titles: Did You Earn That?” please click here. To browse our RMU library, including insightful articles on a wide range of industry topics, please click here.

For more information, or for assistance on other compliance topics, please contact us at (619) 278-0020 to schedule a consultation. 

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