- Thread starter
- #11
Insurance Agent Vs Financial Advisor
- Thread starter FBN
- Start date
- 10,363
You actually need to look at your states Security Regs, not Insurance Regs.
What is classified as a "Financial Planner" is dictated by whatever government entity regulates securites in your state.
The insurance code is telling you that you cant misrepresent yourself. So then you need to look at the securities code to figure out what those misrepresentations could be in your state.
In most states consultant is fine. In most states "Planner" is not. In many states "Advisor" is not ok.
- Thread starter
- #14
Thanks scagent83. I found the securities law that pertains to this. Looks like I can't use financial advisor, financial consultant, or financial planner. Financial Strategist sounds good though.
(1) “Investment adviser” means a person who, for compensation:
(i) Engages in the business of advising others, either directly
or through publications or writings, as to the value of securities or as to the
advisability of investing in, purchasing, or selling securities, or who, for
compensation and as a part of a regular business, issues or promulgates analyses or
reports concerning securities; or
(ii) 1. Provides or offers to provide, directly or indirectly,
financial and investment counseling or advice, on a group or individual basis;
2. Gathers information relating to investments,
establishes financial goals and objectives, processes and analyzes the information
gathered, and recommends a financial plan; or3. Holds out as an investment adviser in any way,
including indicating by advertisement, card, or letterhead, or in any other manner
indicates that the person is, a financial or investment “planner”, “counselor”,
“consultant”, or any other similar type of adviser or consultant.
(2) “Investment adviser” does not include:
(i) An investment adviser representative;
(ii) A bank, savings institution, or trust company;
(iii) A lawyer, certified public accountant, engineer, insurance
producer, or teacher whose performance of investment advisory services is solely
incidental to the practice of the profession, provided that the performance of such
services is not solely incidental unless:
1. The investment advisory services rendered are
connected with and reasonably related to the other professional services rendered;
2. The fee charged for the investment advisory
services is based on the same factors as those used to determine the fee for other
professional services; and
3. The lawyer, certified public accountant, engineer,
insurance producer, or teacher does not hold out as an investment adviser;
(iv) A broker–dealer or its agent whose performance of these
services is solely incidental to the conduct of business as a broker–dealer and who
receives no special compensation for them;
(v) A publisher of any bona fide newspaper, news column,
newsletter, news magazine, or business or financial publication or service, whether
communicated in hard copy form, or by electronic means, or otherwise, that does not
consist of the rendering of advice on the basis of the specific investment situation of
each client;
(vi) A federal covered adviser; or
(vii) Any other person not within the intent of this subsection
as the Commissioner by rule or order designates.
(1) “Investment adviser” means a person who, for compensation:
(i) Engages in the business of advising others, either directly
or through publications or writings, as to the value of securities or as to the
advisability of investing in, purchasing, or selling securities, or who, for
compensation and as a part of a regular business, issues or promulgates analyses or
reports concerning securities; or
(ii) 1. Provides or offers to provide, directly or indirectly,
financial and investment counseling or advice, on a group or individual basis;
2. Gathers information relating to investments,
establishes financial goals and objectives, processes and analyzes the information
gathered, and recommends a financial plan; or3. Holds out as an investment adviser in any way,
including indicating by advertisement, card, or letterhead, or in any other manner
indicates that the person is, a financial or investment “planner”, “counselor”,
“consultant”, or any other similar type of adviser or consultant.
(2) “Investment adviser” does not include:
(i) An investment adviser representative;
(ii) A bank, savings institution, or trust company;
(iii) A lawyer, certified public accountant, engineer, insurance
producer, or teacher whose performance of investment advisory services is solely
incidental to the practice of the profession, provided that the performance of such
services is not solely incidental unless:
1. The investment advisory services rendered are
connected with and reasonably related to the other professional services rendered;
2. The fee charged for the investment advisory
services is based on the same factors as those used to determine the fee for other
professional services; and
3. The lawyer, certified public accountant, engineer,
insurance producer, or teacher does not hold out as an investment adviser;
(iv) A broker–dealer or its agent whose performance of these
services is solely incidental to the conduct of business as a broker–dealer and who
receives no special compensation for them;
(v) A publisher of any bona fide newspaper, news column,
newsletter, news magazine, or business or financial publication or service, whether
communicated in hard copy form, or by electronic means, or otherwise, that does not
consist of the rendering of advice on the basis of the specific investment situation of
each client;
(vi) A federal covered adviser; or
(vii) Any other person not within the intent of this subsection
as the Commissioner by rule or order designates.
Last edited:
- 181
Anyone see the Western & Southern Tennis today? Chris Collinsworth referred to their work as Financial Translators...
- 1,199
I think whatever you determine is legal that you can put on your business card the most important thing to CYA is that's its clear to clients that your earning commissions on products you recommend.
- 181
Excellent point. Especially since Financial Planners disclosing "Fee Only" vs. "Fee Based" is so clear
- 717
Check out California's guidelines regarding name usage...Their guidelines tend to be more stringent than other states....I ran into this problem with company name that was accepted in PA, rejected in CA...it's a pain if you have to deal with it.
Link - Business Entity Application Procedures - Name Approval Criteria
Link - Business Entity Application Procedures - Name Approval Criteria
What about exit planner?
- 11,305
Is that a building code engineer working with elevators, escalators and fire escapes?
Similar threads
