You made a decision to work with a financial professional and have started to interview prospective candidates. As you're comparison shopping you notice that some candidates have a string of letters after their name. Chances are that alphabet soup refers to one or more professional designations. Here are three things it pays to know about financial designations.
There is a difference between being registered or licensed and holding a professional designation. The ability to provide financial advice and conduct sales activities in the securities and insurance industries requires registration with a regulatory body. For example, brokers must be registered with FINRA, a state securities regulator or both. The Securities and Exchange Commission regulates investment advisers who manage $110 million or more in client assets, while state securities regulators have jurisdiction over advisers who manage up to $100 million. You can check out whether a broker or adviser is registered by going to FINRA BrokerCheck.
Pete Chandler | Yahoo Finance