Just as the average investor was hoping the worst of the phantom corporate profit scandals might be over, this week, Worldcom admitted to accounting fraud.

Today's market reflects a substantial loss of confidence. Investors have lost faith in financial advisors, analysts, accountants, corporate earnings, the US dollar, and chief executive officers, CEOs have lost faith in consumer demand, confidence, and spending, Consumers have lost faith in the FBI, priests, and Martha Stewart. And, the United States Internal Revenue Service has lost faith in all of us - hence the return of the random tax audits.

Investors are voting with their feet, and sitting on the sidelines, as it is commonly called, is hurting bottom line profits everywhere. US Treasuries and high-grade corporate bond prices have all increased significantly in a matter of weeks as 'safe harbors' wait it out. And the number of arbitration cases (and lawsuits) filed by wronged investors with the National Association of Securities Dealers (NASD) arbitration board is at an all time high.

There have been numerous full page ads in financial journals such as the Wall Street Journal by various investment firms, some of them who are in hot water, declaring in essence 'that this time they have changed, they will be honest, upfront and credible' with their clients.

It can be argued that having a university degree, verified practical experience and a professional license to practice, cannot in and of itself totally protect the consumer from any individual with criminal intent. One only has to look at the worst betrayers of public trust today to realize that lack of public conscience by greedy individuals transcends all professional and educational boundaries.

But having higher professional standards in the investment world is a start. Securities regulators in the United States have long dragged their feet on education standards and continuing education requirements for the financial advisor.

This time, however, public sentiment is demanding radical change. The capital markets industry as a whole is scrambling to 'correct these deficiencies', a fancy term for setting things right. New standards, more regulations, and oversight boards are being called for to supervised and provide verifiable and credible financial information. But until these efforts are perceived as legitimate, and can be blatantly enforced, it will be a while before some market players' feet warm up again.

Let's take a look at standards for many professionals that we all encounter at one time or another in our daily lives. Registered pharmacists are at the top of the list, as they have, for several years, been given the highest trust and credibility ratings taken in US consumer surveys. See chart insert.

Bermuda is an international market; our professionals come from many foreign jurisdictions. How can you independently verify a financial firm and financial advisor's credentials?

First and foremost, all investment firms providing investment services in Bermuda are required to be licensed to operate and are listed on the Bermuda Monetary Authority Website. www.bma.bm Bermudian financial advisors. If your advisor indicates he/she has a Bermudian securities licence - all current licenses are held and listed at the Bermuda Stock Exchange under an agreement with the United States National Association of Securities Dealers (NASD) Check with www.bsx.com United States Financial Advisors working in Bermuda United States citizens working in Bermuda with a US Securities licence - go to the NASD-R Public Disclosure Brokerage website.

All current, inactive, disciplinary hearings, revocations, etc. of every NASD licensee are available for perusal along with a ten-year employment history. NASD holders also have their fingerprints on file with the FBI, but somehow I don't think they will take your call. Check with National Association of Securities Dealers http://www.nasdr.com/2001.asp Canadian Financial Advisors working in Bermuda Currently, the Canadian securities industry is regulated separately by each province, which makes verification incredibly confusing.

You will need to know where your advisor last worked, or where your advisor was originally licensed. Check with Investment Dealers Association of Canada where you can link to the various provinces, Quebec, Ontario, Alberta, British Columbia, and Nova Scotia. http://www.ida.ca/ United Kingdom.

Financial Advisors working in Bermuda Securities firms and advisors used to be regulated under IMRO; in 201, the FSA, Financial Services Authority became the regulatory agency for deposit-taking, insurance and investment business. Check with http://www.fsa.gov.uk.

When you invest your hard-earned money, it is your responsibility to ask enough questions, and do your homework in order to have that nice comfy trusting feeling about your financial advisor. There are many good people employed in Bermuda who are conscientious, ethical, professionally licensed, and experienced. Take your time in finding one. Once you do listen carefully to what he/she has to say and invest accordingly.

But, be careful. If you are hearing statements such as, "I am studying for a securities licence" or "I am almost certified as a planner, analyst, accountant, etc". Ask more questions; if this advisor is not supervised by licensed securities professional, is providing investment advice, or managing portfolios and there is no firm license, there is a problem.

All of the professionals listed in the chart have spent years in education, training, and expenses to acquire knowledge and skills; they are proud to display their credentials. Would you go to an almost doctor, an almost lawyer, an almost pharmacist?

Look on the wall for the licenses, ask for proof; if they are not there - in the words of Yogi Berra - they are not there!

Martha Harris Myron CPA CFPT is a Bermudian, a Certified Financial PlannerT(US license) practitioner and VP and Manager, Personal Financial Services, Bank of Bermuda. She holds a NASD Series 7 license, is a former US tax practitioner, and is the winner 2001-The Bermudian Magazine - Best of Bermuda Gold Award for Investment Advice. Confidential Email can be directed to marthamyronnorthrock.bm The article expresses the opinion of the author alone, and not necessarily that of Bank of Bermuda. Under no circumstances is this advice to be taken as a recommendation to buy or sell investment products or as a promotion for financial plans. The Editor of the Royal Gazette has final right of approval over headlines, content, and length/brevity of article.