The North American Securities Administrators Association is soliciting comment on a proposed model rule concerning the use of senior-specific certifications and professional designations.

The proposed rule prohibits the misleading use by any person of senior and retiree designations, and it provides a means by which an administrator may recognize the use of certain designations which have been accredited. Violations of the rule may be prosecuted against any person under the administrator’s anti-fraud authority or against registrants under the statutory prohibitions against dishonest and unethical business practices.

The rule is being proposed in response to fears that the use of a designation or a certification by salespersons could mislead seniors into thinking that the salesperson has special qualifications or specialized education in particular areas of finance, financial planning, estate planning, or investing.

“Investors often have insufficient information about the designation or certification when trying to determine which designation or certification represents meaningful educational achievement by the salesperson, or which designation or certification merely represents a marketing tool,” NASAA notes.

A NASAA task force was formed to study what approach, if any, NASAA members should consider in addressing this problem. In the course of their study, the members of the task force considered a number of potential methodologies, including the regulatory initiatives undertaken by the securities regulators in Massachusetts, Nebraska, and Washington. As a result of the task force’s deliberations, the proposed model rule was developed.

The comment period will remain open for 30 days.