A certified financial advisor is a person who has a certification from a professional association or government registry. He must have a thorough knowledge of financial affairs, from personal finance to market behavior.

Most of them have credentials like the CFP certification or CFA (Chartered Financial Analyst). Verify with the organization that issued the credential that your CFA is in good standing with the organization. NSADs Understanding Investment Professional Designations can be very helpful in this regard.

The other professional body that certifies these financial professionals is the CFP, or Certified Financial Planner Board of Standards. The Board is an independent regulatory organization that gives licenses to financial planners. Its better that you check whether the professional is certified as a CFP professional, and whether there are incidences in his professional career that has lead his or her suspension of the certificate by the Board. You can also call the Board at (888) 237-6275 to obtain additional information about the professional.

Financial advisers have to register with either the SEC or the state securities agency where they have their principal place of business, depending on their size. Investment advisers who manage $25 million or more in client assets must register with the SEC. If they manage less than $25 million, they must register with the state securities agency in the state where they have their principal place of business. This is one form of certification or registration that makes the professional accountable.

The investment advisers have to fill out a form called ""Form ADV and file it with either the SEC or the state securities agency, depending on the amount of assets they manage.

The ADV includes two parts. Part I contains vital information about the professionals education, business, and whether they've had problems with regulators or clients. Part II outlines the services, fees, and strategies. Before you choose someone to be your investment adviser you should examine both parts of the ADV, which is also one form of certification.