NAIFA recently wrote to the Consumer Financial Protection Bureau to provide information on protecting senior citizens from financial exploitation. The Bureau had issued a public request for information on the subject earlier this year.
NAIFA reiterated its longstanding condemnation of sales practices that are misleading to any consumers, including senior citizens. This includes the use of designations that imply expertise in seniors’ financial affairs that is exaggerated or nonexistent.
Designations and certifications can be helpful tools for consumers and regulators because they provide a sense of an advisor’s educational background and training. However, NAIFA members believe consumers should not rely solely on advisor’s professional designations to make presumptions about his or her qualifications or ethics.
NAIFA strongly supports model rules created by the National Association of Insurance Commissioners (NAIC) and the North American Securities Administrators Association (NASAA) on the use of senior-specific designations and certifications. These rules are designed to protect seniors and assist them in determining whether a particular credential is authentic and legitimate, and NAIFA has actively encouraged states to adopt them.
The NAIC and NASAA rules, if adopted by all the states, would provide a uniform standard, providing consumer protection but limiting confusion among consumers and advisors.
- Read NAIFA’s complete comment letter.