Tuesday, February 4, 2014

International certification council meets, unilaterally agrees world lacks sufficient financial designations

NEW YORK – Citing an alarming trend towards “transparency, clarity and lucidity” among worldwide financial professional ranking institutions, the Basel-based Centre for International Finance Certification (CIFC) today approved preliminary plans to double the count of the world’s financial designations by the year 2020. The move, which was met with unilateral approval among regulators, financial concerns, and securities attorneys alike, is seen as yet another surge in the overarching trend towards what one lawmaker calls “edufinandemonium.”

“Edufinandemonium is basically the art of making financial education slightly more nuanced than it currently is,” Rep. Steven Bacon (D-NY) said. “For example, you have someone who already is a Certified Public Accountant. Under the current regime, this person is only required to use her certification credential in communications with clients and prospective clients: Samantha Knox, CPA. Under the new proposed rule, all who pass the Certified Public Accountancy exam will automatically be granted an additional designation of RSTP – Really Smart Tax Person. We’re also going to require that those with bachelor’s degrees will list BA/BS, and those with masters’ degrees list those as well. Thus, in New York State, we’ve gone from Miss Samantha Knox, CPA, to Miss Samantha Knox, CPA, RSTP, MS (Fin), BS (Fin.). You see? A client meeting for the first time with the first professional might not feel nearly as confident as one meeting with the second.”

According to Bacon, the legislation is estimated to create an instantaneous 4.7 million new designations in the state of New York in its first year alone. Nor, he says, is this the only benefit. “We estimate the amount of additional fees these professionals are going to be able to generate at about $60 billion in the first five years or so,” he said. “Of course, half of that or so will be offset by the incremental costs of printing on both sides of their business cards.” But accountants aren’t the only ones expected to benefit from CIFC’s new legislation. According to Bacon, licensed attorneys also stand to gain from the new regs. “Most attorneys use JD or Esq. after their names – respectively, teacher of law, juris doctor, or Esquire.” (Bacon, himself a 1997 magna cum laude graduate of Yeshiva University’s Benjamin N. Cardozo School of Law, said he would text its meaning to this reporter later on.) “Since lawyers presumably have undergraduate degrees, we’re going to list those, but we thought of an additional hierarchical calculus,” he said. “You know how in law school, the brightest students generally end up editing the law review or clerking for some prominent judge? From now on, any attorney with that kind of accomplishment is going to be styled IMC – iure malum canem. In English, it means ‘Wicked Righteous Law Dog,’ he said. “Anyone with a 3.5 GPA or above presumably made dean’s list for one semester, and the worldwide designation for these talented professionals will be LO – legis observare, ‘Lawyer to Watch,’ he said. The designations are also cumulative, Bacon added. “This is expected to dramatically change the public’s perception of that hardworking Ivy League attorney who just isn’t able to bill $1,000 an hour on a ‘Gemini Jones, JD.’ But “Gemini M. Jones, JD, Esq., IMC, LO, LLM, BA (Eng.); see website for additional designations?” I can physically hear the client billfolds opening wider,” Bacon said.

Area financial professionals had mixed emotions about the project. “ I’m not sure I’m ready for this – I don’t understand all of the current designations,” said Joel Redmond, a private bank financial planner in Central New York. “Parents already have bumper stickers that say ‘My grade schooler is smarter and prettier than your grade schooler.’ These extra designations are like making those bumper stickers windshield-sized,” he said. “I mean, don’t you think these kids just want to play dodgeball?” 

Redmond is the author of the recently-published Tradecraft: What Spymasters Can teach us About Investing, released on Cyber Monday 2013. He himself said he’ll be affected by the new legislation as well.

“I’m a Certified Financial PlannerÔ professional, so I’d still use that designation,” Redmond said. “But I looked over the laws, and there’s a provision that hasn’t really been widely announced. They actually want you to use designations for unrelated jobs you’ve had in times past. Now, I’ve been a cook, waiter, janitor, parking lot attendant, mobile phone merchant, editor, photographer, reporter, goatherd, and at least ten other things,” Redmond said. “I’m thinking of hiring a stunt double who’s only had one or two jobs to play me in client interactions.”

The book Tradecraft is available here: www.unlimitedpublishing.com/redmond.

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