New Regulations, Filed By The Massachusetts Securities Division, Define Credentials Standards For Advisors To Senior Investors

William Francis Galvin, the Massachusetts Secretary of the Commonwealth, says that his office has set up new standards for advisers using credentials implying that they are experts when it comes to senior investors.

According to Galvin, the state of Massachusetts is charging two Massachusetts annuity salesmen with using unethical and dishonest practices when marketing annuities to seniors: Michael Mark Delmonico and John Christopher Huck.

Delmonico is accused of presenting himself as an unbiased and objective financial advisor to seniors, but allegedly was actually trying to sell high-commission annuities that were often not suitable for senior investors. He has denied the charges. Also charged in the complaint was Workman Securities Corp. and company officials Robert Vollbrecht and Paul Maxa for failing to properly supervise Delmonico.

Huck, charged in a separate administrative action, is accused of providing “financial counseling” to senior citizens via financial workshops. Huck was allegedly also just trying to sell annuities and other kinds of insurance products.

Galvin said that complaint shows how the use of senior credentials can be misleading, causing confusion and harm to seniors-this is the reason why new regulations were needed. He called the misuse of the title “senior financial adviser” a disturbing trend promoted by individuals who targeted seniors.

Investment adviser representatives and broker-dealer agents were among groups noted for individuals known to misuse these credentials. The securities division cited an example where a “purported senior specialist” would use such designations to make it seem like he or she were acting as an independent adviser but that the person was actually trying to promote a specific product for sale.

The new rules will be published on March 23, 2007 in the Massachusetts Register.

Shepherd Smith and Edwards represents senior investors and other investors who have sustained investment losses because of the inappropriate actions of advisers, brokers, investment firms, and others. Contact Shepherd Smith and Edwards today for your free consultation.

Related Web Resources:

Secretary Galvin Charges Two Agents and a Broker-Dealer with Dishonest and Unethical Marketing to Seniors, Securities Division (Administrative Complaints)

Discussions of reasons for, and objectives of, proposed regulation regarding use of senior designations (PDF)