Securities News Releases

Tuesday, April 01, 2008
Contact: Ryan Hobart, (573) 526-4734

Carnahan Announces Rules Stopping Misleading "Senior Specialist" Designations

Jefferson City, Missouri – Secretary of State Robin Carnahan announced today that her office has filed rules to stop securities brokers and investment advisers from using misleading credentials targeted at senior investors.

In a trend taking hold both in Missouri and nationwide, salespeople marketing financial and investment services to seniors are using credentials implying special knowledge or training in senior investment issues. Secretary Carnahan’s Securities Division discovered that many of these designations do not grant any special knowledge other than how to sell to seniors. The filed rules target designations lacking competency, monitoring, disciplinary or continuing education standards.

"My office has come across too many cases where salespeople are trying to falsely gain the confidence and trust of seniors by using hollow or misleading credentials," said Carnahan. "This rule will help Missouri's senior investors by combating designations implying training or expertise where none exists."

Secretary Carnahan's Senior Investor Protection Unit, a group of trained and experienced investigators, recently issued a report on "free lunch" investment seminars. The report found that of the almost 30 seminars investigated, over 70% were presented by someone using a senior designation. In many instances, those claiming a special designation were not licensed to sell securities or provide investment advice and likely used the designation to bolster their resume.

Under the rules, securities brokers and investment advisers could use a senior designation if it is issued by a group accredited by a nationally recognized accreditation organization. Those found to be using misleading senior designations could face the suspension or revocation of a license.

With the filing of these rules, Missouri joins others like Massachusetts and the North American Securities Administrators Association, in addressing the use of senior designations. The filed rules are subject to the customary state regulation filing process and would go into effect on January 1, 2009.

To learn more about safe investing and to view the free lunch report visit Secretary Carnahan’s new investor protection website at: www.MissouriSafeSavings.com.

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