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FINRA and the state of Nebraska have “acknowledged” the existence of the Certified Wealth Strategist® (CWS®) designation by including the designation on the designation lists maintained by those governmental entities. What does this mean? To Cannon, it means that those governmental entities have made a review of the documentation submitted by Cannon financial Institute for the CWS® designation and found it to be compliant with industry standards for such designations. However, it does not mean that CWS® has been “approved” or “endorsed” by these governmental entities because they have clearly said they do not recommend, approve or endorse a particular designation. See links below:
All other state securities agencies, such as the State of Washington’s Department of Financial Institutions Securities Division, who have created laws related to such designations have provided that they do not evaluate, acknowledge, scrutinize or prohibit the use of a designation until a complaint has been made against a financial services professional in the state who is using a designation in a way that is alleged to be fraudulent or misleading. Most of these states follow the NASAA Model Rule on Senior Specific Certifications and Professional Designations as their point of reference and some states, such as Washington, have enacted laws adopting the language of the model rule. Cannon has reviewed the NASAA model rule on Senior Specific Certifications and Professional Designations and it is our belief that the CWS® designation functions within all perimeters of the rule. For example, the CWS® designation must be earned by an applicant. It is not self conferred. There are standards and procedures in place for assuring competency, for monitoring and disciplining designees and it has continuing education requirements.
FEDERAL AGENCIES
Commodity Futures Trading Commission (CFTC)
Three Lafayette Centre
1155 21st Street, N.W.
Washington, DC 20581
Phone: 202-418-5000
Web site: www.cftc.gov
The CFTC was created by Congress in 1974 as an independent regulator of the commodity futures and options markets in the United States. The CFTC is responsible for fostering the economic utility of futures markets by encouraging their competitiveness and efficiency, ensuring their integrity and protecting market participants against manipulation, abusive trade practices and fraud. Through effective oversight regulation, the CFTC better enables the commodity futures markets to serve their vital function in the nation's economy, providing a mechanism for price discovery and a means of offsetting price risks.
Securities and Exchange Commission (SEC)
450 Fifth Street, NW
Washington, DC 20549
Phone: 202-551-6551 (Office of Investor Education and Assistance)
Toll-Free Number: 800-SEC-0330
Web site: www.sec.gov
The SEC was created by the Securities Exchange Act of 1934 as an independent, quasi-judicial U.S. government agency. Its mission is to administer securities laws in the securities field (principally the Securities Act of 1933, the Securities Exchange Act of 1934 and the Investment Advisers and Investment Company Acts of 1940) and to protect the investing public. The SEC has the authority to examine investment advisers, investment companies and broker/dealer firms and bring enforcement actions against parties it believes are violating the federal securities laws. Currently, approximately 7,500 investment advisers with $25 million or more under management are registered with the SEC. Investment advisers managing less than $25 million are registered with their state securities agencies. Investors can contact the SEC to request information on a particular individual or firm providing securities and investment services or to lodge a complaint against an investment adviser.
SELF-REGULATORY ORGANIZATIONS (SROs)
Financial Industry Regulatory Authority (FINRA)
1735 K Street, N.W.
Washington, DC 20006
Phone: 202-728-8000
Toll-Free Number: 800-289-9999
Web sites: www.finra.org
Created in July 2007 as the result of a merger between NASD and the member regulation, enforcement and arbitration functions of the New York Stock Exchange (NYSE), FINRA is largest self-regulatory organization for all securities firms doing business in the United States. FINRA develops rules and regulations and conducts regulatory reviews of member activities for the protection and benefit of investors. FINRA oversees and registers the nation’s more than 5,100 brokerage firms, approximately 173,000 branch offices and more than 665,000 registered securities representatives. Consumers can contact FINRA to obtain disciplinary and work histories, as well as other background information, on member firms and individual brokers through its BrokerCheck program, or to get investor information materials on its Web sites.
National Futures Association (NFA)
200 W. Madison Street, Suite 1600
Chicago, IL 60606-3447
Phone: 312-781-1410
Toll-Free Number: 800-621-3570
Web site: www.nfa.futures.org
The NFA is a congressionally authorized self-regulatory organization of the futures industry and is entirely financed by the futures industry. No person or firm may engage in any business that involves buying or selling futures contracts for the public without being an NFA member. NFA provides innovative and efficient regulatory programs that safeguard the integrity of the futures marks and protects the investing public.
STATE GOVERNMENT MEMBERSHIP ORGANIZATIONS
National Association of Insurance Commissioners (NAIC)
2301 McGee Street, Suite 800
Kansas City, MO 64108-2662
Phone: 816-842-3600
Web site: www.naic.org
The NAIC was created in 1871 by state insurance commissioners to provide a level of uniformity among individual states’ regulatory activities, serve as a clearinghouse for information among individual states, develop model regulatory legislation to be approved by each state and organize political unity among the insurance commissioners of each state.
National Association of State Boards of Accountancy (NASBA)
150 Fourth Avenue North, Suite 700
Nashville, TN 37219-2417
Phone: 615-880-4200
Web site: www.nasba.org
Established in 1908, NASBA serves as a forum for the 54 U.S. boards of accountancy that administer the Uniform CPA Examination, license public accountants and regulate the practice of public accountancy in the United States. NASBA’s mission is to enhance the effectiveness of state boards of accountancy. NASBA focuses on licensing requirements (education, experience and examination), as well as international reciprocity, legislation, landmark legal decisions and how changes in the accounting profession affect the regulatory scheme.
North American Securities Administrators Association (NASAA)
750 First Street, N.S., Suite 1140
Washington, DC 20002
Phone: 202-737-0900
Web site: www.nasaa.org
NASAA is the international organization devoted to investor protection. NASAA was founded in 1919 and is speaking for securities agencies responsible for grassroots investor protection and efficient capital formation. Its membership consists of the securities administrators in the 50 states, the District of Columbia, Canada, Mexico, Puerto Rico and the U.S. Virgin Islands. Investors can contact NASAA to get phone numbers and Internet addresses of state securities regulators.
STATE AGENCIES
State Bars (50)
Contact state government or the American Bar Association for information about each state bar association.
Any financial advice provided by an attorney or law practitioner acting in the capacity of a financial planner could fall under the jurisdiction of a state bar association if it involves unethical or unprofessional conduct, and then, only if that particular state has a unified state bar association. Not all states have unified state bar associations requiring compulsory membership from all legal practitioners in that state. A state bar association’s principal functions are to promote and maintain high standards in the practice of law and in the constitution and operation of the courts, improve the justice system and its administration, enhance the ethical conduct and professional competence of its members and advance public understanding of the law.
State Boards of Accountancy (50 + 4 U.S. Districts)
Contact state government or the National Association of State Boards of Accountancy for information about each state board of accountancy.
The state boards of accountancy protect the public interest by regulating the practice of public accountancy. Each state board of accountancy is a government agency that defines the role of, and upholds rules of professional conduct for, Certified Public Accountants (CPAs) and public accountants practicing in that state or district; grants licenses based on applicants meeting examination, experience and education requirements; and monitors the continuing competence of licensees through mandated continuing professional education and practice review programs. The state boards regulate more than 550,000 practitioners.
State Insurance Commissions (50)
Contact state government or National Association of Insurance Commissioners information about each state insurance commission.
All states require that anyone who sells insurance must be licensed to sell that specific type of insurance. Each state’s insurance commission, headed by an insurance commissioner, administers and enforces that state’s insurance laws. A number of states prohibit persons from giving advice about insurance products unless they are licensed as counselors. Also, many states prohibit insurance agents from holding themselves out as financial planners if their sole activity is selling insurance or unless they disclose the fact that they are paid for selling insurance. Many insurance commissions provide toll-free numbers for the public to lodge complaints against individuals providing insurance products or advice.
State Securities Agencies (50)
Contact state government or North American Securities Administrators Association for information about each state securities agency.
States, more than the federal government, are the chief enforcers of securities activities. State securities agencies license individuals and brokerage firms to trade in securities in the state(s) in which they practice, and pursue investment or securities fraud cases on behalf of the public. Nearly all states have laws regulating investment advisers and their representatives (only Wyoming does not). Several states have laws specifically regulating, in some manner, use of the term "financial planner" or include "financial planners who give investment advice" in their definition of an investment adviser. States with investment adviser laws require examinations in order to register for investment adviser representatives. All states use NASAA-developed exams administered by the NASD® such as the Series 65 Competency Exam for investment adviser representatives.
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