Secretary of State Cox Urges Investors to Check Credentials of “Senior Specialists”
 

ATLANTA … Secretary of State Cathy Cox today urged Georgia seniors to carefully check the credentials of individuals holding themselves out as “senior specialists.”

            The North American Securities Administrators Association (NASAA) has observed a significant increase in the use of this designation implying expertise in providing services to investors 55 years and older. Securities regulators in the eastern half of the United States have opened 26 cases involving “senior specialists” in the past year alone. Most of the cases involve securities recommendations by individuals who are not properly licensed by state securities regulators.

Secretary Cox said bogus “senior specialists” commonly target senior investors through seminars where the “specialist” reviews seniors’ assets, including securities portfolios. These bogus “experts” typically recommend liquidating securities positions and using the proceeds to purchase indexed or variable annuities products or other investments the specialist offers.

“By calling themselves ‘senior specialists’ certain individuals seek to create a false level of comfort among seniors by claiming expertise on issues important to the elderly. But the training they receive is often nothing more than marketing and selling techniques targeting elderly Georgians,” said Secretary Cox. “These sales people and the alphabet soup of letters after their names can be confusing, and in some cases, may even be deceptive to seniors,” she added. 

In many jurisdictions, including Georgia, these recommendations may be viewed as providing investment advice for compensation. “The senior specialist would be offering investment advice as an unregistered investment adviser and, therefore, may be subject to enforcement action by regulatory agencies,” Ms. Cox said.

Although there are legitimate organizations whose members must complete rigorous programs of study, pass extensive examinations, and have practical experience in order to receive this title, a number of entities formed in the last few years have created designations with much less stringent requirements. Without reviewing the course material for each of these designations, it is difficult to verify the claims made by the promoters. 

“Before doing business with any investment professional, all investors, especially senior investors, should check with our office to determine whether the individual is properly licensed and whether there have been any complaints or disciplinary problems involving the individual or his or her firm,” Secretary Cox said.  Investors may check if a Georgia individual is properly registered by visiting the Secretary of State’s Securities database search at https://secure.sos.state.ga.us/SBR_Weblookup_Prod/Search.aspx. To conduct a search of the nationwide database of securities brokers, visit the NASD’s website at http://www.nasd.com.

Georgians with questions or concerns about an investment opportunity should call the Secretary of State’s Securities Division (404) 656-3920 or visit the Senior Investor Resource Center on the NASAA website at www.nasaa.org for additional investor education and protection tips for seniors.