Advisers looking to bolster image as investor confidence unravels

NEW YORK, Jan. 7 /PRNewswire/ -- According to a recent poll from InvestmentNews, 69 percent of financial advisers are worried the industries' reputation has been tarnished by Bernard Madoff's alleged $50 billion fraud.

Additionally, the poll, which was conducted online from Dec. 24 through Dec. 30, suggests the majority of advisers are looking to groups such as the Financial Planning Association and the National Association of Personal Financial Advisors to bolster their image in the wake of the scandal. According to the survey, 86.3 percent of the 1,015 advisers who responded said they were looking to these groups to increase efforts to portray advisers in a more positive light.

"The Madoff scandal shows just how imperative it is to deal with advisers with proper credentials and ethics," said Jim Pavia, editor of InvestmentNews. "Now more than ever, investors need to make sure safeguards are in place like checking the credentials and professional affiliations of a prospective adviser."

InvestmentNews recommends that investors look for the following certifications in an adviser:

• NAPFA - Registered Advisor
• Certified Financial Planner (CFP)
• Chartered Fin. Consultant (ChFC)
• Certified Public Accountant (CPA)

InvestmentNews also recommends making sure investors' money is held in a separate custodial account when investing with a financial adviser and that investors check their financial statements regularly.

The InvestmentNews survey indicated that 59.3 percent of advisers reached out to clients in December to reassure them that their assets were safe from similar schemes.

About InvestmentNews

Since 1998, InvestmentNews has been delivering news and analysis essential to the business of financial advisers. The weekly newspaper, which combines comprehensive news with accurate, independent reporting on the entire financial services industry, provides financial advisers with insight into the market unavailable in any other publication.

In addition to news, InvestmentNews organizes a number of webcasts and conferences throughout the year, bringing together readers with key industry experts. The InvestmentNews' main office is located in New York, with offices in Boston, Irvine, Chicago, Detroit, Philadelphia, San Francisco and Washington, DC.

SOURCE InvestmentNews