What is a Registered Investment Advisor (RIA)?
Under the Investment Advisers Act of 1940, as amended, an Investment Advisor is "any person who, for compensation, engages in the business of advising others, either directly or through publications or writings, as to the value of securities or as to the advisability of investing in, purchasing, or selling securities, or who, for compensation and as part of a regular business, issues or promulgates analysis or reports concerning securities..."
A typical Investment Advisor:
- Registers either with their state or the SEC by filing Form ADV and meeting other requirements
- Evaluates client's needs and risk tolerance, and advises on appropriate investments
- Monitors client's portfolio. Regular performance reports may be provided
- May provide other wealth management services, such as retirement, trust, tax, charitable giving, estate and financial planning services
- Uses a broker/dealer and/or bank to custody assets and to settle and/or to execute trades
What is a CFP?
The CFP marks represent a Certified Financial Planner designation. An individual who has earned these marks has met the education, examination, experience and ethics standards established by the Certified Financial Planners Board of Standards (CFP Board). Therefore, a financial planner who has earned the CFP marks should be distinguished from a financial planner who has not. Consumers need to be aware that there is nothing preventing a person from declaring themselves a "Financial Planner", and it is therefore incumbent upon the consumer to differentiate between a planner who has earned the marks and one who hasn't.
If a financial planner has earned the right to use the CFP marks, this means that he or she has met the following requirements:
- Education: There are three ways to meet the CFP certification education requirement: 1) completing an education program at a college or university whose curriculum is registered with the CFP Board; or 2) submitting a transcript of previous financial planning-related course work to the CFP Board for review and credit; or 3) showing the attainment of certain professional designations or academic degrees.
- Examination: Candidates for the CFP certification must pass a rigorous two-day, 10-hour CFP Certification Examination administered by the CFP Board that covers the financial planning process and includes such topics as tax planning, employee benefits and retirement planning, estate planning, investment management and insurance
- Experience: Candidates for CFP certification must prove they have experience in the financial planning process before being authorized to use the CFP marks.
- Ethics: Candidates for CFP certification have their backgrounds checked by the CFP Board, and must also disclose any investigations or legal proceedings related to their professional or business conduct. The CFP Board reviews all such disclosures and investigates those statements that indicate areas of concern.
What is a CLU?
The Chartered Life Underwriter (CLU) designation is the undisputed professional credential for persons involved in the protection, accumulation, preservation, and distribution of the economic values of human life. Since the first examinations were held in 1928, more than 85,000 men and women have met the educational, experience, and ethics mandates needed to earn the CLU designation. The CLU program provides insights into the life insurance business, its importance to the economy, its operation and distribution systems, and its resurging importance for safe and secure investments. For agents, field managers, home office personnel, and others involved in providing life insurance products to the public, the CLU designation is the common bond for continuing growth and commitment to professionalism.
Why select a CLU?
Since the first examinations were held in 1928, only a select group, fewer than five percent of those in the field, have qualified to earn this designation. The requirements for becoming a CLU are stringent. Each CLU must pass a comprehensive curriculum of ten college level courses, have extensive experience in the industry, and preserve the integrity of the designation by subscribing to a strict code of professional ethics. The CLU program provides insights into the life insurance business, its importance to the economy, its operation and distribution systems, and its resurging importance for safe and secure investments.
What is the RFC Designation?
A Registered Financial Consultant has met the qualifications required to serve the public effectively, and moreover, is committed to essential professional continuing education. You can't delegate your job, career, civic or family responsibilities -- but you can obtain qualified, professional financial advice and service.
The Registered Financial Consultant (RFC) is a professional designation awarded by the International Association of Registered Financial Consultants to those financial advisors who can meet the high standards of education, experience and integrity that are required of all its members. It is the only professional organization that requires all of its members to meet and document seven stringent requirements of education, experience, examination, integrity, licensing, ethics and a significant amount of continuing professional education.
The IARFC is a non-profit professional credentialing organization of proven financial professionals formed to foster public confidence in the financial planning profession, to help financial advisors exchange planning techniques, and to give deserved recognition to those practitioners who are truly committed to ethical standards and continuous professional education.
What is a ChFC?
The Chartered Financial Consultant (ChFC) focuses on the comprehensive financial planning process as an organized way to collect and analyze information concerning a client's total financial situation. They help their clients identify specific financial goals; and to formulate, implement and monitor a comprehensive plan to achieve those goals. A ChFC adheres to a strict code of ethics and has prepared extensively to provide sound, comprehensive financial advice. Every ChFC candidate must have at least three years of industry experience and successfully pass 10 college-level courses from the American College in Bryn Mawr, PA. Since its inception, more than 37,000 men and women have met the educational, continuing education, experience, and ethics mandates needed to earn the ChFC designation.
Securities and financial planning offered through LPL Financial, member of Securities Investor Protection Corporation (SIPC). For an explanatory brochure, please visit SIPC.org. LPL Financial is also a member of FINRA and An Investment Advisor.
