It turned out to be a costly lunch. Now she can't get at most of her money without paying stiff penalties.
“I can't get it back until after I'm 85 — if I'm still here,” the Independence woman complained.
Thousands of seniors entrust their life's savings to seminar salesmen, often with such titles as “Certified Senior Advisor,” “Chartered Senior Financial Planner” or “Certified Financial Gerontologist.” But state officials say the titles often involve little if any real training.
On Tuesday, Missouri Secretary of State Robin Carnahan cracked down on what she called a growing problem of misleading “senior specialist” credentials being used by some securities brokers and investment advisers.
“My office has come across too many cases where salespeople are trying to falsely gain the confidence and trust of seniors,” Carnahan said.
Her office announced a new rule that would only allow securities brokers and investment sales agents to use titles that are specifically approved by the state and by a recognized accredited agency.
Carnahan's action follows a yearlong probe by her office in which investigators attended nearly 30 free-lunch seminars across the state, including in Kansas City.
The investigation, which is ongoing, concluded that in most cases, “although these seminars are touted as educational, the ultimate goal is the sale of a product, often equity-indexed annuities.”
Nebraska and Massachusetts recently adopted similar rules, noting that investment sales agents are increasingly eyeing an estimated $15 trillion held by Americans 65 years and older.
Under the new Missouri rule, which would go into effect in January, groups or sales people who are found to mislead seniors with exaggerated designations could face the suspension or revocation of their licenses.
Missouri and Kansas insurance regulators said they also are considering similar marketing limitations on insurance agents.
Kansas Insurance Commissioner Sandy Praeger said most of the complaints her office receives from seniors involve agents using “these official-sounding titles” to peddle annuities. More>>
