Unregulated Advisor Designations Leave Seniors Vulnerable, IMCA Says

IMCA’s letter to the CFPB provides supplemental comments to a letter American National Standards Institute submitted. ANSI accredited IMCA’s Certified Investment Management Analyst CIMA certification in 2011. Other key points from the letter include:

• The best manner in which to determine legitimacy, value and authenticity of credentials is through a national or international standard designed for organizations that certify individuals, according to ANSI.
• In the case of CIMA certification, “seniors and other consumers … can be assured that their advisor was certified by an objective, fair, transparent, valid and high-quality process.”
• Fewer than 5% of certification bodies in financial services have completed any accreditation process for their respective personnel certification programs. 
• Significant differences exist between certificate programs, university degrees and certification programs, and the three should not be considered equal when establishing financial advisory expertise.  

“The most effective way for seniors and all financial consumers to truly determine the value and competency of a financial advisor is to ascertain the credibility of the advisor’s qualifications,” Betsy Piper-Bach, chairman of IMCA’s board of directors, said in a statement. “A certification earned through a properly administered financial certification program provides comfort that the advisor has mastered advanced skills and knowledge.”

As IMCA notes, as an education and credentialing organization, it does not lobby Congress or regulators or advocate for any particular legislative or regulatory position.

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Read CFP Board to CFPB: Seniors Drowning in Alphabet Soup of Advisor Credentials on AdvisorOne.