Sunday, September 13, 2009

Securities professionals are criminally prohibited from indicating specialization in serving senior citizens in a misleading manner.

California Corporations Code § 25243.5 became operative on July 1, 2009. Under the provisions of §25243.5, securities professionals are criminally prohibited from using a certification, credential, or professional designation which indicates specialization in serving senior citizens and retirees in a misleading manner.

Under
§ 25243.5, the prohibited use of these certifications, credentials, or professional designations includes, but is not limited to, the use of a certification, credential, or professional designation:
  • By a person who has not actually earned or is otherwise ineligible to use the certification, credential, or designation;
  • That is nonexistent or self-conferred;
  • Indicating or implying a level of occupational qualifications obtained through education, training, or experience that the person using the certification, credential, or professional designation does not have.
  • Obtained from a designating, credentialing, or certifying organization where: (1) The organization is primarily engaged in the business of instruction in sales marketing; or (2) The organization does not have reasonable standards or procedures for assuring the competency of individuals to whom it grants a certification, credential, or professional designation; or (3) The organization does not have reasonable standards or procedures for monitoring and disciplining individuals with a certification, credential, or professional designation for improper or unethical conduct; or (4) The organization does not have reasonable continuing education requirements for individuals with a certification, credential, or professional designation in order to maintain the certificate,credential, or professional designation.

All businesses, not just brokers, should be keep informed of changes in laws regulating their industry. What might have been standard operating procedure yesterday might today be the commission of a crime.

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