Claims against investment salespeople draw scrutiny

The Olympian • Published October 30, 2008

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The state is taking action to limit the variety of titles that some investment salespeople can claim when talking to senior citizens.

Salespeople use designations such as "Certified Senior Adviser" and "Certified Senior Consultant" when looking to sell their services, but the companies offering them require different amounts of coursework.

The Department of Financial Institutions said such titles are being used inappropriately.

"There has been a proliferation of professional designations that purport to show special knowledge of issues relating to seniors. Some of these designations represent a significant course of study; others are mere marketing devices," the agency said in an announcement this week.

It adopted rules suggested by a national group for regulators, the North American Securities Administrators Association. The rules make it a violation of state ethics regulations to use "a senior designation to mislead seniors about the salesperson's expertise in senior issues."

"Understanding what you're investing in and who you are investing with is crucial to making sound financial decisions," Director of Securities Mike Stevenson said. "Make sure you have the information you need to make educated choices before giving anyone any money."

The department recommends consumers check that a company is licensed in the state before making any investment through it.