Insurance Agents Marketing As "Financial Consultants" Etc.

BYSFG

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I've been seeing more and more of these lately. How hard to the DOI/DOC crack down on these individuals?

Clearly its not a situation of "if you can't beat em, join em."
 
I'm a financial consultant. In fact, I'm a Chartered financial consultant (ChFC).

What's the problem? Losing too much business to a financial consultant?


There are a couple of states that do require a Series 65 registration in order to call yourself a financial consultant.


Why are you looking to government to solve this "problem"?

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BTW, if I set up a separate legal entity and proper agreements, I could charge planning fees for my services too - just not including any portfolio or securities advice without proper registrations.
 
I'm a financial consultant. In fact, I'm a Chartered financial consultant (ChFC).

What's the problem? Losing too much business to a financial consultant?


There are a couple of states that do require a Series 65 registration in order to call yourself a financial consultant.


Why are you looking to government to solve this "problem"?

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BTW, if I set up a separate legal entity and proper agreements, I could charge planning fees for my services too - just not including any portfolio or securities advice without proper registrations.

Im familiar with your designation. :)

No. I shouldn't give so much thought to it but seeing how as I'm planning to go down that path - getting designations etc., it just annoys me whenever I see an insurance agent market themselves as a "financial consultant" without proper designations/qualification/licenses etc. Even more when they sometimes use words like "investment" and everything goes back to insurance.

Not looking for the gov. to solve the "problem," just wondering how serious do they take it. I understand its in the state rules and regulation and may differ from state to state slightly.
 
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Depends on what each state considers a priority. In California, the word 'senior' is the hot word that they've cracked down on. At my old firm, you used to be able to be called a "Senior Financial Advisor" if you had junior advisors. Can't do that anymore.

California cracked down on a bunch of "senior" designations:
Senior Designations


If you have four years of experience, you can get the RFC designation so you can "join 'em". They changed their educational requirement for the RFC so that anyone with 4 years experience and a life license can have their designation. Great association, but poor decision, in my opinion.

Membership Door Opens for Life Insurance Professionals : IARFC Blog

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I will say this - the more comprehensive you hold yourself out to the public, the more the prosecution will use against you in court.

 
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That's pretty much the only list I look at anymore.

Anything else I've seen regarding designations on the CA DOI website has to do with waiving education requirements for licensing if you have already taken certain courses - CLU, CFP, ChFC, LUTCF, CPCU, etc.

http://www.insurance.ca.gov/0200-industry/0110-whats-new/upload/NoticeLegislativeChanges2008.pdf

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I don't know much about CEP, but I wouldn't have any problem with designations from The American College, College for Financial Planning (both regionally accredited), or Institute for Business and Finance (not accredited, but well-regarded). Plus CFA and CIMA for investments are both some of the highest regarded designations.

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FINRA made this resource available on various state's regulations on designations. The California reference talks about how designations are regulated, but does not maintain a list of "acceptable" or "approved" designations.

Regulation of Professional Designations | FINRA.org

FINRA does not approve or endorse any designations themselves.

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Im familiar with your designation. :)

No. I shouldn't give so much thought to it but seeing how as I'm planning to go down that path - getting designations etc., it just annoys me whenever I see an insurance agent market themselves as a "financial consultant" without proper designations/qualification/licenses etc. Even more when they sometimes use words like "investment" and everything goes back to insurance.

Not looking for the gov. to solve the "problem," just wondering how serious do they take it. I understand its in the state rules and regulation and may differ from state to state slightly.

To go back to this point - it really should go back to the training that that person has taken.

I would suggest that if they have invested in their education - aside from designations - such as LEAP, Circle of Wealth, Insurance Pro Shop's Found Money Management... if they are well versed in most matters of personal finance (and can back it up), then they are a financial consultant.

The insurance industry lost the "marketing terminology war". Securities salespeople are called Financial Advisors while insurance agents are relegated to just the term "agents".

http://www.financialsoftware.com/pracbldr/documents/WhyLifeAgentsHaveaPoorImagebyEdMorrow.pdf

If the agent is working with clients to solve problems, rather than just trying to sell products... then they are consultants.

Bob Ritter’s Blog #86: The #1 Reason Advisors Are NOT Getting Paid What They’re Worth

It's not the marketing title they use, but the processes they use with clients that determines their marketing role.
 
That is one intense video.

I get where you're coming from with "consultant" DHK, but looking through some state's regs. etc., lines are murky for some.

Guess we did get the short end of the stick, regarding that terminology war.

If only everything was clear cut across the nation and not state by state, maybe some uniformity? Or would that be regressive...
 
I used to work with a gal that had it on her cards as conslutant. No one ever noticed until I pointed it out. So do people just not even notice those designations?
 
I used to work with a gal that had it on her cards as conslutant. No one ever noticed until I pointed it out. So do people just not even notice those designations?

Business cards are highly overrated. Most people barely look at them period, much less what is on them. In my experience, the people who actually want your card are looking at you as a prospect.
 
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