| A certified financial advisor is a person who | | | | professional.Financial advisers have to |
| has a certification from a professional | | | | register with either the SEC or the state |
| association or government registry. He must | | | | securities agency where they have their |
| have a thorough knowledge of financial | | | | principal place of business, depending on |
| affairs, from personal finance to market | | | | their size. Investment advisers who manage |
| behavior.Most of them have credentials like | | | | $25 million or more in client assets must |
| the CFP certification or CFA (Chartered | | | | register with the SEC. If they manage less |
| Financial Analyst). Verify with the | | | | than $25 million, they must register with the |
| organization that issued the credential that | | | | state securities agency in the state where |
| your CFA is in good standing with the | | | | they have their principal place of business. |
| organization. NSAD's Understanding Investment | | | | This is one form of certification or |
| Professional Designations can be very helpful | | | | registration that makes the professional |
| in this regard.The other professional body | | | | accountable.The investment advisers have to |
| that certifies these financial professionals | | | | fill out a form called ""Form ADV" and file |
| is the CFP, or Certified Financial Planner | | | | it with either the SEC or the state |
| Board of Standards. The Board is an | | | | securities agency, depending on the amount of |
| independent regulatory organization that | | | | assets they manage.The ADV includes two |
| gives licenses to financial planners. It's | | | | parts. Part I contains vital information |
| better that you check whether the | | | | about the professional's education, business, |
| professional is certified as a CFP | | | | and whether they've had problems with |
| professional, and whether there are | | | | regulators or clients. Part II outlines the |
| incidences in his professional career that | | | | services, fees, and strategies. Before you |
| has lead his or her suspension of the | | | | choose someone to be your investment adviser |
| certificate by the Board. You can also call | | | | you should examine both parts of the ADV, |
| the Board at (888) 237-6275 to obtain | | | | which is also one form of certification. |
| additional information about the | | | | |