Does your Financial Advisor have a Certification or a Designation?

The Investment Industry Regulatory Organization of Canada suggests: 

If an advisor represents that she or he has special expertise - a certification or a financial designation - you should make sure you understand what the certificate or designation means and what the advisor did to obtain it. If an advisor tells you that he or she has a certain designation or certification, ask questions. Do not rely solely on a financial certification or designation to determine whether an advisor can provide the type of investment services or products you need.

More here:

http://www.iiroc.ca/investors/UnderstandFinCert/Pages/default.aspx

• If they are creating a Financial Plan for you, are they qualified to do so?

• If they are managing your portfolio, are they qualified to do so and do they have the appropriate licensing?
• Do they have the Chartered Financial Analyst (CFA) or Chartered Investment Manager (CIM) designations?

 

Financial Literacy for many is difficult to obtain as it is not a mandatory part of any educational curriculum. 

As a result, individuals and families need to rely on the expertise of others.

Many will hold themselves out as "experts" in their ability to offer financial advice. 

However, many of these experts have not necessarily studied for and passed the rigorous examinations that demonstrate the competencies required to attain these designations.

Furthermore, many of these designations come with an important Code of Ethics that hold the advisor to a higher standard when offering advice. 

As the Investment Industry Regulator suggests:

Ask the tough questions: challenge your advisor to prove their competency with their designation.

The views expressed are those of the author, Scott Tomenson, a Raymond James Financial Advisor, and not necessarily those of Raymond James Ltd. It is provided as a general source of information only and should not be considered to be personal investment advice or a solicitation to buy or sell securities. Investors considering any investment should consult with their Investment Advisor to ensure that it is suitable for the investor's circumstances and risk tolerance before making any investment decision. The information contained in this blog was obtained from sources believed to be reliable, however, we cannot represent that it is accurate or complete. Raymond James Ltd. is a member of the Canadian Investor Protection Fund.