Letterhead and Business Cards

How agents identify themselves on a business card or letterhead is important since these are, typically, the client’s first introduction to the agent. The key ethical consideration when designing letterhead and business cards is to include sufficient information to adequately identify the agent and the company being represented without being misleading.

Agents generally have fairly wide latitude in designing stationery and business cards with respect to both the design and language used, although some companies may have more stringent requirements than others.

Widely recognized professional designations can add credibility to an agent’s business card or letterhead. However, their use must be accurate and not misleading.

Consider the letterhead for a certified financial planner (CFP®) designee. While the principal of the agency may be a CFP, perhaps not all employees/associates of the firm hold that designation.

The second example gives the impression that Jared and all of the associates hold a CFP designation, which may not be the case. Similar problems can arise with other titles and professional designations.

Some titles carry specific regulatory meaning. For example, “registered investment adviser” is reserved for those who have passed a licensing examination and are registered with the SEC. Some jurisdictions have guidelines on what terminology can be used and under what circumstances.

When an agent holds a title from a firm, such as registered representative, the agent should include the name and address of the broker/dealer whom the agent represents. To omit the company affiliation would mislead prospective clients as to the nature of the title.

For those agents who use the products of multiple companies, it is important that if products are listed, the company with whom each product is placed and its principal home office address should also be supplied.