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NEWARK
– The New Jersey Bureau of Securities
(Bureau) is reminding New Jersey’s
senior citizens about a new law prohibiting
the use of misleading "senior"
or "retirement" professional designations
in connection with securities brokerage
and investment advisory activities. On July
6, 2010, Governor Christie signed legislation
making New Jersey among 31 states that now
offer this protection for seniors.
The
law prohibits the use of senior-specialization
designations by any person who lacks certification
from an accrediting organization.
“This
is an important tool in protecting senior
citizens in New Jersey,” said Attorney
General Paula T. Dow. “Predatory practices
against our seniors will be vigorously pursued
by my office.”
The
law is based on the model adopted in March
2008 by the North American Securities Administrators
Association (NASAA), of which New Jersey
is a member state. NASAA developed the model
rule after organizing a multi-state effort
to focus attention on unscrupulous behavior
targeting senior investors by implying self-conferred
expertise.
“Unfortunately,
securities regulators in New Jersey and
elsewhere continue to encounter advisers
who sell unsuitable high risk or bogus financial
products by luring senior citizens through
the use of misleading professional designations
such as ‘Certified Elder Planning
Specialist,’” said Thomas R.
Calcagni, Acting Director of New Jersey’s
Division of Consumer Affairs. “This
law makes clear that using a phony senior-specific
designation that falsely implies some financial
expertise in the investment needs of our
elderly investors is against the law in
New Jersey.”
“Using
this law, we will be better positioned to
protect New Jersey’s senior citizens
from being misled into purchasing investment
products that are unsuitable for them, based
on their investment goals and needs, ”
said Marc B. Minor, Chief of the New Jersey
Bureau of Securities. “That means
heading off marketing tricks and gimmicks
with a law prohibiting the use of illusive
titles that can be used to lull elderly
investors into a false sense of security.”
While
any investor can be misled by the use of
false titles, this law specifically protects
senior citizens from misleading certifications
and designations aimed at taking advantage
of them. Seniors continue to be the number
one target for securities fraud. Approximately
20 percent of all Americans over the age
of 65 – over 7.5 million seniors –
have fallen victim to financial fraud.
Investors
of all ages are strongly encouraged to research
advisers before investing. The public can
obtain free background information on investment
professionals, including their employment
and disciplinary history, by contacting
the Bureau of Securities and requesting
a copy of a Central Registration Depository
“CRD” report.
If
you have encountered an adviser claiming
to have questionable “senior specialist”
designations, or if you have other concerns
or complaints, you are encouraged to contact
the Bureau of Securities. Please contact
the Bureau via email
or call toll-free 1-866-I-Invest.
Complaint forms can also be found on the
Bureau’s web site at www.njsecurities.gov/compform.htm.
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