Are Investment Advisors required to have credentials?
While some Investment Advisors and Financial Planners have credentials like CFP (Certified Financial Planner) or CFA (chartered financial analyst), they are not required to by federal or state laws. Unlike federally registered advisers, many states do require their advisers and representatives to pass a proficiency exam or meet other requirements. Investment Advisors and Financial Planners may come from many different educational and professional backgrounds. Before you hire a financial professional, be sure to ask about their background. If they have a credential, ask them what it means and what they had to do to earn it. Also find out what organization issued the credential, and then contact the organization to verify whether the professional you’re considering did, in fact, earn the credential and whether the professional remains in good standing with the organization. You can find out the different types of testing and other requirements on the website of the North American Securit
