The U.S. Securities and Exchange Commission recently released a warning
to investors to thoroughly check a financial advisor’s purported
The SEC recently issued a warning to investors and it is something that
we at Meyer Wilson have touched on in the past – beware of trusting
a financial advisor solely on the basis of their claimed credentials.
Sadly, many brokers and financial advisors use false or exaggerated credentials
to gain trust from potential customers.
In addition to cautioning investors about credentials, the SEC also warned
against perceiving a financial advisor as legitimate or successful on
the basis of claimed results. Before you invest, don’t be afraid
to really dig into your financial advisor’s background to uncover
what credentials they actually have and what they have actually accomplished.
How to Check Your Broker’s Background
Investors have multiple avenues for learning more about their financial
advisor, or a potential advisor.
There is no law, federal or state, that requires an investment adviser
to have credentials. Many of them do have credentials, such as “Certified
Financial Planner” or “Chartered Financial Analyst”
but these are optional.
Simply because an investment adviser claims to have credentials, doesn’t
mean they actually have them or that those credentials are any indication
of that advisor’s quality. While credentials are certainly something
to consider when making an investment decision, it is best to look at
these in conjunction with other, more pertinent characteristics such as
registration through FINRA and/or a state agency.
If you lost money through investment fraud or misconduct, Meyer Wilson
is here for you. Contact our team of investment fraud lawyers today and
you will receive a
free, confidential evaluation of your case.
Watch the video below to hear Attorney Courtney Werning explain more about