What Is a Financial Planner?
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What Is a Financial Planner?
The services planners provide depend on many factors, including their licenses and areas of expertise. Financial planners come from a wide variety of backgrounds. Some may have degrees in accounting, but this is not necessary. Finding out whether a financial planner has a certificate or license in financial planning can help you make a decision on which planner you wish to use.
Things To Know
- The government regulates financial services professionals according to the services they offer.
- A variety of certifications are offered to planners, varying according to services they will offer.
Planners are regulated
Government bodies and self-regulatory organizations regulate financial services professionals according to the services they offer. For example, someone who is licensed to sell stocks is regulated as a stockbroker. Insurance agents are regulated by state insurance commissioners. But, any provider of financial services can identify him or herself as a "financial planner."
However—and here is the distinction—regardless of their licensing, background or experience, no one can legally give investment advice for compensation without being properly registered as an investment adviser or an investment adviser representative by either the Securities and Exchange Commission (SEC) or the appropriate state securities agency of the state in which he or she does business. (The amount of assets under management by the adviser determines where he or she must be registered.)