Alphabet Soup And Gobbledygook

At any rate such people are out there and it is up to us and the regulators to find a way to curb this kind of representation. I have not seen any of these ads recently so perhaps they didn’t work and consumers as well as those of us in the business could detect the “tricks.”

Alphabet soup is, in my judgment, a large and growing problem. The American College has identified almost 250 designations that, in one way or another, relate to the financial services business. The College was good enough to supply me with a list for my own evaluation. FINRA (formerly NASD) also lists many of these same designations on its website with an explanation of the requirements to qualify for the designation. This could be useful, I believe, to an agent who may have a competitor displaying one or more designations of doubtful value.

Using the list supplied to me by the American College and the FINRA website I was able to look up quite a few of these questionable designations. Almost all were either “certified” or “chartered” by some illusory organization. Some required a few hours of self-study to qualify while others merely required passing one or two tests. A few had an experience requirement, but many did not.

No wonder regulators at both the state and federal level are becoming increasingly concerned over the proliferation of “Alphabet Soup.” It is not good for the consumer and it is bad for the business. For the consumer, phony designations imply knowledge and experience that isn’t there, and it hurts the business by confusing valuable and important designations with imitations. Perhaps the regulators will solve the problem by limiting the use of designations that are of doubtful value to consumers. But like all regulation, rule-making takes time and in the meantime we and consumers have to find ways to cope.

The spread of misinformation (Gobbledygook) is, for the most part, a lack of proper training. With the rise of independents in the business this is increasingly difficult. Perhaps this is a viable mission for local NAIFA associations and a prime justification for their role in our business. Some companies do an excellent job of monitoring and controlling the use of designations by their representatives, but many do not. Perhaps the regulators should give those who are not performing a bit of a nudge to be sure their representatives are not holding themselves out with bogus titles. With information available from FINRA it is not difficult to spot the bad eggs.

Alphabet Soup and Gobbledygook are fellow travelers. Wherever you spot one the other is almost always present. “Tricks of the Trade” may have been a bit hard to endure, but it would be unwise to ignore the message entirely. We cleanse ourselves or our reputation is soiled by those who disregard proper training and the value of earning a truly useful designation.