MYRIAD OF CREDENTIALS CAN CREATE CONFUSION FOR POTENTIAL INVESTORS

                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: SUNDAY, January 12, 1992                   TAG: 9201090661
SECTION: BUSINESS                    PAGE: E-1   EDITION: METRO 
SOURCE: MAG POFF
DATELINE:                                 LENGTH: Medium
MYRIAD OF CREDENTIALS CAN CREATE CONFUSION FOR POTENTIAL INVESTORS
The public is demanding more credentials from people who claim to be financial planners. In response to that demand, the supply of credentials is growing. And predictably, so is the confusion about what all the professional designations mean.
One publication recently listed an alphabet soup of 34 different titles that financial planners currently use to suggest credentials.
The list ranged from APFS (Accredited Personal Financial Specialist) to RHU (Registered Health Underwriter). Most of them fell under the letter C because of the cachet of words like "chartered" and "certified."
The December issue of Inc. magazine took a look at a few of the designations related to the insurance industry and found some startling differences.
A CPCA (Chartered Property and Casualty Underwriter), for instance, must take 10 three-hour exams and accrue five years of experience.
A CLU (Chartered Life Underwriter) brings to his customers 10 college-level courses, three years' experience and continuing education.
At the other end of the list, according to Inc., is the CPIA (Certified Professional Insurance Agent). That designation means simply that the agent has sold $100,000 worth of property and casualty insurance in a 12-month period.
Where, then, is the potential client to look for evidence of some proficiency?
Actually, there are three major organizations that train and certify people who follow the career of financial planning.

The Institute of Certified Financial Planners based in Denver, Colo., which has issued its credential of CFP or Certified Financial Planner to about 8,000 people. The organization offers educational opportunities and a code of ethics for its members.

International Association for Financial Planning of Atlanta, Ga., whose members may choose to pass an examination required for its Registry of Financial Planners designation.

National Association of Personal Financial Advisors, based in Buffalo Grove, Ill., is the smallest of the associations. It consists of fee-only planners, or those who charge their clients directly for services rather than earning commissions for sale of policies or other financial products.
Certified public accountants must pass their own rigorous licensing procedure and, unless they specialise in financial planning, are exempt from other state qualifying exams.
In addition, the American Institute of Certified Public Accountants in New York offers the designation of Accredited Personal Financial Specialist. To qualify, professionals who already are CPAs must pass an extra exam, have three year's experience and take continuing education.
The American Society of Chartered Life Underwriters, an insurance industry group in Bryn Mawr, Pa., has the credential of Chartered Financial Consultant. It requires a 10-course program and a code of ethics.
In Virginia, the State Corporation Commission now requires a standardized examination as part of its licensing requirement for financial planners.
Anyone offering financial advice to clients must be registered with the state as an investment advisor. A potential client can determine whether a specific person has registered by calling the SCC toll-free at 1-800-552-7945. The SCC, however, cannot provide lists of registrants or recommend a planner.
Certified Public Accountants are not registered through the SCC.
Kenneth Schrad, spokesman for the SCC, said licensing is required for every person who takes a fee for financial planning or who recommends and sells securities or insurance.
The significant distinction, Schrad said, is the fee or commission be earned through planning or selling to the public. There must be some form of compensation for the services.
On the other hand, anyone who does financial planning as part of services offered by a bank, for instance, need not be licensed.
The exemptions, Schrad said, cover employees of banks, teachers, lawyers, CPAs and publishers. The last category means that people who sell financial and market newsletters need not be tested or registered.
Schrad said the Virginia examination was devised by the National Association of State Securities Administrators, an organization of officials from many states.

Mag Poff covers banking, personal finance, real estate and advertising for the Roanoke Times & World-News.

by Archana Subramaniam by CNB