Decoding Financial Advisor Credentials

Those credentials after a financial advisor’s name can either be a meaningful signal or pure noise, and most people are never taught how to tell the difference. We’re opening the hood on the financial advice industry and translating the terms you see on websites, account statements, and disclosures so you can ask sharper questions and feel more confident about who is managing your money.

We start with the basics that often get skipped: the licensing and regulatory foundation. We talk through what it means to pass key securities exams like the Series 7 and the Series 65/66, why firms treat them as non-negotiable, and how that connects to an advisor’s ability to discuss stocks, mutual funds, and investment strategy. Then we untangle two names that sound similar but do very different jobs: FINRA as the watchdog that enforces rules and oversight, and SIPC as protection designed to help customers recover assets if a brokerage firm fails. If you remember the fear of 2008, you’ll recognize why that distinction still matters for investor confidence today.

From there, we get into the “why” behind continuing education and fiduciary training. I explain what the Accredited Investment Fiduciary (AIF) designation teaches about putting client interests first through a documented investment process, and what earning the AIFA adds for consulting with 401(k) plan sponsors. We also walk through retirement plan focused credentials and wealth strategy training that support high net worth planning, plan governance, and the kind of structure that holds up under scrutiny.

If you want a clearer way to evaluate a financial advisor, share this with a friend, subscribe, and leave a review. What credential or financial term do you want us to decode next?

Securities and advisory services offered through LPL Financial, a registered investment advisor. Member FINRA/SIPC.

The opinions voiced in this podcast are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which strategies or investments may suit you, consult the appropriate qualified professional before deciding.  

Transcript

Welcome And Compliance Disclosure

SPEAKER_00 0:01

Welcome to Money Matters with Greg, where we dive into the money conversations shaping your life. From investments to estate planning, insurance to taxes, we cover it all with a fresh perspective. Join Greg and his guests each week to get inspired and take control of your financial future. Let's get started. Securities and investment advisory services offered to LPL Financial, a registered investment advisor, member PinRES IPC.

Why Credentials Matter In Advice

FINRA And Wall Street Oversight

SIPC Protection And Investor Confidence

AIF And AIFA Fiduciary Process

SPEAKER_02 1:03

We're outside, just outside Chicago, up here in the northwestern uh section of Indiana. We are a financial advising group that manages money for high net worth clients and high net worth clients uh throughout the nation. We have a number of different uh states that we cover. I think we're in close to 25 states now, almost half the USA. And we talk about money on this show. The show is broadcast on WBLP103.1 FM at 11 o'clock or sorry, one o'clock on Thursdays and 1 o'clock on Saturdays is a replay. And this week we wanted to talk about just a few things about the industry and really what financial advising is, financial planning, and a number of the accreditations that you hear out there as investors and as clients of ours. We talk about a lot of these things, but I want to be able to make sure that uh the audience knows some of the things that are out there that um regulatory requirements are continued education requirements in the industry, and exactly how you become a um fiduciary and a registered financial advisor in this wonderful world that is the investment world. On this show, we talk money, anything to do with money, trying to help you gain some money, gain some wealth, and uh make sure you grow and create your wealth, protect, preserve your wealth, distribute your wealth in life, and distribute after distribute your um your wealth after death. And what we like to be able to bring on is a number of guests that we have, as well as uh that are experts in the uh their industries, their respective industries. I always like to be a fly in the wall for multiple conversations, and I'm very privy to some incredible conversations, in my opinion, um, just by being in the industry and being around some of the stuff we talk about. And I feel like everyone should really have an opportunity to be able to kind of listen in. And that's really why we started the the podcast here and started this pod a number of years ago. We were into season five uh now. I think we're at 184. This would be the 184th episode. So thanks for being here with us. You can find us on Spotify, Apple, YouTube, our YouTube channel at Farowealth, all of our socials, as well as uh uh which would include LinkedIn, Facebook, Instagram, and X. Uh you can certainly find us out there. And if you have any questions or any sort of things you'd like to be able to talk about or have me talk about, sort of uh update, please just email me, Greg at FaroWealth.com, and uh love to hear from you. You can always uh call the office as well. And uh 219-246-2516 is uh our office number. Leave a message, and uh we certainly uh would love to hear from you and and and hear some of your thoughts about uh what we do here. Again, uh broadcasting on WVLP FM 103.1 here locally. I want to thank you for uh thank the family of WVLP. I always like to be able to give a shout out. I highly recommend if you go to WVLP.org, you can see some of the shows that they have, uh, some fantastic uh show hosts and um DJs that uh spend some great music uh as well as a number of uh great programs that are out there are broadcast every week, uh, as well as this show. So thanks for listening. Thanks for being a part of it. Please follow us uh when you get a chance. Uh maybe you might be able to learn some things and uh help you uh gain some money in your life um and do it the right way, which is what I want to talk about today. So one of the things that uh a lot of people get asked uh multiple times with uh much of the alphabet soup that's behind my name and uh many of the advisors that are out there as far as what these accreditations are or are not, um, is clients ask all the time, you know, what does this actually mean? What does uh why did you do this? Why did you take these tests? Why did you pass these procedures? And uh not only does it start in the industry where you really need your series seven, which is not an easy test, uh, you can have series 66, 65 uh to talk mutual funds and to talk uh investments, as well as securities, you need all those uh different, you have to pass those tests. And that really starts very early when you go into the business. If you don't pass those tests, you can't talk the market, you can't talk um individual stocks and mutual funds, so you immediately are uh not worth much. So many organizations, very large organizations, uh they do not say if you go into their program, they hire you to take the test, pass the test, and you don't pass the test, you're gone. And you're fired the next day or even that day. And so there are strict requirements, takes a lot of training, takes a little bit of time. And uh one thing I've always learned is that you're always learning. If you're not continuing to learn, you're dead and you people will pass you by. But also it really has always been a mission of mine to learn as much as I possibly can about the industry and bring what these accreditations offer to clients and their lives. The first two really important accreditations I want to talk about. Now I'm gonna go into credentials in a second, but as far as there are many, many different, different names that you see out there as investors that you wonder maybe, you know, what exactly is that? What does it do? The first one would be FENRA. In my world, this is the financial industry regulatory authority that is very important to our industry. It is the police or the cops that watch over brokerages and advisors to really enforce the rules, the exams, and it makes sure that firms play by Wall Street's rules. And there are many, many rules in our world. FINRA is very, very important. And you see things like member FINRA slash SIP on a number of different brokerages and broker dealers, registered investment advisors uh that you see out there. We are all policed by FINRA. And it is very important that we comply. And if you don't do what FINRA expects you to do, which is follow the rules, uh it's very easy to be kicked out of the business and kicked out of the industry. So this is really think of it as Wall Street's self-regulator that is out there. And you have to answer to them, you have to follow the rules. So FENREA is very, very important. The next one is the Securities Investor Protection Corporation. So very different from FINRA, but it is short for CIPIC SIPC. And this is like insurance for your brokerage account or your individual account. So if a broker, if a big broker goes bankrupt, SIPC steps in to help get your stocks, get your cash back up to$5,000 per customer. Now, this includes a max of$250,000 in cash as well, but it really does two things. So these two entities do two different things. The FINERA polices the industry, CIPIC protects you from a broker collapse. So as simple as I can make it. And they're both very, very important. They obviously CIPIC adds investor confidence, knowing that if the world falls apart, and look, I had a lot of questions in 2008 about the health of my bank or the health of, you know, what do you think about, you know, this bank's health? What do you think about this brokerage's health? And uh because people were scared. So knowing that there was insurance behind things helps. And uh, I think it's just really, really important to kind of explain what Fenro with Cipic is. Enough of that. We'll get moving on to a number of different other things. So I want to be able to talk about some of the accreditations that are in the industry that are very, very important, and also the ones that I have and really kind of go over those first. Look, the truth is none of these designations guarantee that I'm the smartest guy in the room. But they do show that I put in the work and that I take this very, very seriously and I'm always looking to learn. I never want to stop learning, and the industry is always changing, so and so should I. Uh I should change as well. And that is just really, I just think it's really, really important that we continue to add things to bring to clients, whether it be ideas or some sort of training that makes you better, a better advisor for everyone. Now, I want to dig into kind of deep dive into the fact that I am an AIF, which is an accredited accredited investment fiduciary. And I recently accomplished just this month my AIFA. So uh I want to go through those. Those are huge as far as the program goes. I'm also a CFPA, I'm also a CWS and a PPC. I'm in the middle of my SEPA C E P A, which is exit planning. I'm gonna talk about that in a second. And then I'm also pushing for my CFP. I've always wanted it. Uh, I've been building a business for years and always made excuses not to get it, and I'm determined to get it as my career keeps going. I'm going through the study process with that. But basically, I've been at this for almost 30 years, and I've always been believed that you should keep on learning. And I highly recommend that you do the same as much as you can. And so that's really where my extra credentials have come kind of come in. So the AIF is an accredited investment fiduciary, and this is one um that taught me really the core principles of putting your interest first. Being a fiduciary is clients are first, service, uh, service for sure, and also making sure that these investment decisions that we put you in that you do are done the right way. They're organized, they're monitored, and we track them based on the AIF, accredited investment fiduciary. You can go to the website, and I'm gonna add to my screen here uh, real quick, to be able to share with everyone. Uh, if you're on YouTube, you'll be seeing this um as well. And I want to be able to include this uh here as far as uh FENRA. Uh this is the FENRA website. Uh just being able to talk about that, you go to FENRAF-I-N-R-A.org. And um, if you listen to the podcast, you can just check it out uh at your leisure. And then SIPC is uh SIPC.org as well. So I wanted to continue to talk about some of the websites. If you go to our YouTube channel, you'll see this video and then also talking to this as much as I can in regards to um the podcast uh here. Money matters with Greg and Greg Farrell, CEO and owner of Faro Wealth and registered financial advisor, um, and really talking about some of the accreditations that we have um available to us in the industry, and then what I actually have behind my name as far as Alpha Butt Soup. So I went over the AIF's accredited investment fiduciary and the core principles of putting the interest uh of the clients and how to make investment decisions uh the right way uh as a fiduciary and making sure that we are have a process in regards to our investment process or investment philosophy and the analysis of those investments uh that we put clients in.

SPEAKER_01 12:12

So I talked about FINRA and CIPIC and what they do and how they work.

Retirement Plan Credentials For 401(k)s

What He Is Studying Next

Wrap-Up And Subscribe

SPEAKER_02 12:17

Now I want to go into some of the accreditations and just sort of update you on um starting with basically the letters of the alphabet, uh, what I have and the accreditations that I have and that I've worked towards and the reasons why. Uh the first one is AIF. Uh it's an accredited investment fiduciary, and that is the first step to then becoming an AIFA. Uh the training for the AIF, uh you go through, you sit for a test, and uh really this helps you uh come up with a process in regards to your investment philosophy and your investment process as well, really prepares investment professionals and those that are managing money, uh which is what we do here, uh, to carry out your financial responsibilities. And students uh have to go through the training, you have to sit for the AIF test, uh, and then you can um, in order to be able to be an AIF uh candidate, um it's it's a lot. And you basically organize, you monitor, you learn to know uh exactly uh what it is to be responsible for other people's money and how to invest it and invest it well um and invest it wisely um and uh have that process. And that's really what's uh is the first step to not only being a wealth management group that is dealing with private wealth and helping others with their private wealth, but also in the 401k in the retirement plan business, um, helping participants, helping the plan sponsor, the owner of the companies, um, and their 401k. Look, they don't want to be in the 401k business. That's our job. And so doing things the right way, that ultimately if they do get audited by the Department of Labor, which does happen, that the Department of Labor sees that there's a process. And that's really what we're our intent is by not only having the accreditation, but following the rules of the accreditation that are very, very, very important. Um along those lines, then I'm very excited to be able to get my AIFA. Um, that is uh just happened recently, and that is another level. Um, and only active AIF uh designees are allowed to train for this. You have to go through the AIF first, and then you go through the uh AIFA designation, and this builds on the AIF knowledge and really equips us with the uh expertise needed uh for new heights. Uh so now I can actually be a consultant um and consult uh with plan sponsors. I can get paid as a consultant for uh businesses to hire me to go in to uh investigate their plan um and their overall retirement plans. Uh this only happens a few times a year. Uh the website's being shown now on YouTube. Um and you can just certainly check it out. It's um it's at Broadbridge.com. Broadbridge is a company that bought fiduciary uh FI360. So many in the industry know FI360 was recently purchased by Broadbridge. So that's sort of uh you see a lot of interchangeable parts in regards to um this website and what it does. Uh, this also is a website where I have my PPC. I'll get to that in a second. Um, but I wanted to sort of explain what an AIF is, what an AIFA is, and then kind of move on from there. The show's Money Manager, Greg. I'm Greg Farrell, CEO, owner of Ferrell Wealth. It's a wealth management firm that's here locally in Valparaiso on the show, uh broadcast here at W VLP uh FM 103.1 on Thursdays at 1 o'clock, and then ultimately uh Saturday replayed at 1 o'clock as well. Um, we talked money on the show. So that's really what I'm trying to talk about is investments, creation of wealth, protection of wealth, and uh on the investment side, some of the things that are out there that uh I've gone for personally to uh learn more and be a better advisor uh across the board for all people involved. The next accreditation I want to talk about is the CFPA. Um this is a certified uh this is uh NAPAS, uh which is the National Association of Plan Advisors accreditation. Um and this um is um it's a certified plan um advisor. So this again, you'll see this in a lot of my accreditations. Uh, they all have to do with or lean towards the retirement plan business just because we have such a robust retirement plan business uh and we do things the right way. So this is a certified plan financial analyst uh working just with financial plan or uh with uh plan sponsors and their overall 401k. Uh this is again a sit for a test. Uh you have to go through a very long, arduous process in regards to the training and the learning, and then ultimately bring these things to plan sponsors to be able to um maybe correct issues, bring in ideas, uh new mechanisms that are available to plan sponsors um as well. Then uh in alphabetical order, I want to talk about the CWS. This is one of the first ones I've ever received. I received it over 15 years ago. Um, and there's multiple CEs that I continue education requirements that I have to keep it. Um this is the certified wealth strategist uh accreditation. Now, this is crafted really to help financial professionals work with the affluent and the high net worth and the ultra-high net worth families. Um, this is a focus on wealth management to a a whole nother level. And uh it's one of my favorite accreditations, uh, mainly because it talks a lot about practice management as well. Um, and this really fosters another standard of professionalism that nurtures this confidence needed for um client conversations, um, really provides the essential skills to navigate uh complex financial decisions and structures. Uh I really like this because it this this uh accreditation um really talks about practice practice management as a financial advisor, as a financial planner, as all of these things that we all talk about, but incorporates um investments and debt and um stock options and um estate planning and a number of different things that all matter, especially to the high net worth. And I've always say just because you have a number of zeros behind your net worth doesn't mean you have any less complex problems. Um, there are 13 uh stages or 13 steps inside of this um that high net worth individuals and families uh see and have issues with. Um, and that's what uh we drill down when we sit and talk. Um the entire Feral Wealth business is built around grow and creation of wealth, protection and preservation of wealth, distribution of wealth and in life, and distribution and of wealth in death after death. And uh those four quadrants are their 13 issues that we see. The entire our logo is built on this. You'll see the four quadrants in our logo, done um podcasts and episodes uh on YouTube as well, um, explaining our logo and how it all works. Um, but our entire core business is built around the premise that um there are uh multiple things in the wealth management world that need to be discussed. Some of them might relate to clients, some of them might not. Uh, some of them might fit, some of them won't. But um, they need to be discussed, and you need to at least make sure that we're talking about these things. Um in uh alphabetical order, then I'll finish with the PPC. And the PPC is also uh a FENRA endorsed uh this is a professional plan consultant. And as a plan consultant, uh it shows that you head sit for a test as well. You have accreditations, uh uh requirements in regards to uh experience, just like all of these do. And um it's another layer of professional plan analysis. So I basically have a number of different retirement plan accreditations uh that I can bring to clients uh and bring the the learnings that I have uh to those plan sponsors and those business owners to be the best retirement plan advisor um as possible. Uh with that, uh just want to be able to talk about some of the things as to why. Um certainly I've had these, but also what I'm working on next. So the SEPA is the next planning I get in May and I go through the testing for that. I've done a ton of training already and hours and hours and hours of that. Um that is this uh that's a certified exit planning advisor. So that is talking to business owners about their exit um and are they going to sell? Are they going to transfer? Are they going to have passed on to family? Um, is there a uh a hierarchy? Is there a uh an overall um plan for um exchange of power uh and ownership in businesses uh and to do things the right way? And maybe there might be private equity or maybe it might be uh purchased within the industry. But very excited about that. That's coming. Uh, and then uh as I mentioned before, I've been working for two years on the CFP program. Um, and then ultimately we'll sit for that test uh coming up. That is a certified financial planner. You see that uh quite often, that's advertised everywhere. I've always wanted that, uh, and so it's a goal of mine to get um because a number of my peers have them, and I just feel like when I'm speaking to audiences and I'm speaking here to podcasts, that it uh it really should be required. I've never necessarily needed it. Uh, I don't necessarily need it now, but it is one of those things that's a goal that always been a goal of mine. Uh, and I want to make sure that um, you know, as as we all try to do and uh basically uh satisfy those goals as much as possible. So I want to thank everybody here at WVLP 103.1 that shows money matters with Craig. I want to thank everybody that's watching here on YouTube, but also uh on Spotify and Apple and listening. Very excited to be able to kind of bring you some of these things that uh we hear in the industry. It's a lot of alphabet soup. And again, uh, you know, it's not to say that I'm the smartest man in the room or smartest guy in the room overall, because there are some really, really bright people in this industry. But the accreditations have taught me a number of things that I'm able to bring to clients and hopefully uh be the best advisor I can possibly be. I want to thank everybody for listening here on episode 184. Uh, please email me, Greg at Farowealth, with any ideas and uh thoughts uh that you might like to talk about as far as financial anything to do with money. This is what we talk about. If you have guests that you might would like to be a part of as well to be on the show, you can always call the office 209-246-2516. Uh, email me, Greg at FarrowWealth.com. And I want to thank everybody for being here. Hopefully, this was helpful in explaining some of the accreditations that are out there. Fenra, CIPIC, you name year all these things. Thanks for being here today, and uh, we'll catch you next week. See ya.

SPEAKER_00 24:08

Thanks for tuning into Money Matters with Greg. We hope you gained some valuable insights today. Remember, your financial journey is personal, but you don't have to go it alone. If you enjoyed the show, be sure to subscribe and share. Until next time, here's to Making Your Money Work for You. Securities and investment advisory services offered through LPL Financial, a registered investment advisor, member FINRA SIPCONISER,