Letters.

Standard Setting Makes History

I commend the article "Raising the Stakes for Standard Setting," which was published in the May 2002 issue of ASSOCIATION MANAGEMENT. Standard setting is one of the greatest contributions associations make to nation, the world, and to economic growth everywhere.

As the American Society of Civil Engineers celebrates its 150th anniversary this year, standard settings is a significant part of its history and heritage. ASCE is perhaps most proud of its central role in the development of Standard Time, which established the Atlantic, Eastern, Central, Mountain, and Pacific time zones that we all still use today. ASCE efforts in establishing Standard Time reached realization on November 18, 1883, when railroads all across the nation embraced this new standard.

Curtis C. Deane, CAE President, American Society of Civil Engineers Foundation, Washington, D.C.

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Clarifying Financial Certifications

In the May issue of ASSOCIATION MANAGEMENT, the sidebar "Finding a Financial Consultant for Your Association," on page 48 totally confused the CFA (Chartered Financial Analyst) designation with the CFP (Certified Financial Planner) designation, to the detriment of both.

The Certified Financial Planner certification is granted by the CFP Board of Standards, Denver. It certifies that holders have met standards of education (both initial and ongoing), ethics, experience, and have passed a comprehensive 10-hour exam testing their ability to practice what they've learned. It is, as the sidebar notes, intended as the standard for personal financial planning--an ongoing, comprehensive, and client-centered process that thoroughly explores and provides opportunities to enhance the overall quality of one's life. Although many CFP professionals are employed by professional associations, many more work with individuals and families to help them meet their life goals. There are more than 39,000 Certified Financial Planner certificants in the United States and nearly 60,000 worldwide.

There are a number of reputable and helpful credentials that financial professionals in different disciplines may hold, but none is as rigorously focused on investment analysis and management as the Chartered Financial Analyst designation. The backbone of the CFA program is three levels of examination (each of which is six hours long) that measure a candidate's understanding of a multidisciplinary Global Body of Knowledge and the candidate's ability to apply this knowledge to the investment decision-making process. This practical application inures to the advantage of institutional and individual investors seeking a professional to manage their portfolio of assets. A relevant and evolving curriculum, rigorous examinations, and appropriate educational and work experience have been the hallmarks of the CFA program throughout its 40-year history. The Association for Investment Management and Research, Charlottesville, Virginia, the administrative body for the CFA program, also maintains a stringent code of ethic s, adherence to which is a condition of earning and maintaining the right to use the CFA designation.

The sidebar further confused many issues. What most associations would be looking for would be either an investment manager or an investment management consultant (who would help the organization hire, evaluate, and manage an investment manager).

The regulatory check you mentioned, with the National Association of Securities Dealers (NASD), would be a check on whether there were any violations of laws pertaining to securities sales. We would hope that associations employing someone for help with their investments would not use someone whose advice is "solely incidental to brokerage activities"--in other words, selling something.

If you want to check on whether someone is a Registered Investment Advisor and whether any complaints have been filed against him or her, you would need to check with the Securities and Exchange Commission, or if the individual has less than $25 million under management, with the state in which he or she is registered.

We should mention that many financial advisers are dually registered--that is, they are registered representatives regulated by NASD and they are registered investment advisers, regulated by the Securities and Exchange Commission.

Unfortunately, this sidebar was less well-researched than we've come to expect from ASSOCIATION MANAGEMENT. You usually set a much higher standard. Please do call on related associations when preparing sidebars such as this-- we'll be glad to help.

Janet G. McCallen, CAE CEO, Financial Planning Association, Atlanta

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Charles W.L. Deale, CAE Vice President, Member and Candidate Services, Association for Investment Management and Research, Charlottesville, Virginia;

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