There are many good things that can come out of a recession, especially one largely brought on by greed, corruption and corporate mismanagement.

An economic downturn can result in tougher consumer protections. And Lord knows, we need to protect consumers.

Specifically, we need better regulation of the financial services industry. Because of ignorance or poor judgment, or both, the financially challenged need protection.

I know that anti-regulation zealots pull their hair out at the mere suggestion of government oversight. But let's get real. As a society, it would be naive and reckless to just say "caveat emptor" (Latin for "let the buyer beware").

I'm stunned and disappointed at the number of homeowners I've met who admit they didn't fully understand the mortgage papers they were signing. They say they didn't know they had the escalating adjustable-rate mortgages that have caused so many foreclosures.

The problem is, buyers don't beware. And we all know you can't expect the folks selling stuff to always do the right thing. Certainly, the debacle in the housing industry is proof of this.

At nearly every workshop I give on basic investing, somebody who has a workplace retirement portfolio containing equity investments asks me how they can get into the stock market.

Now more than ever, we need better regulation of people calling themselves financial planners so that consumers understand what investing really means.

Investors are dismayed and distraught to see their portfolios tanking so badly.

We've had so many good years in the equities markets that people forgot or didn't realize that when you invest, you put your money — all of it — at risk for loss. So you should not invest a dollar you can't afford to lose — even for retirement.

Goodness knows I never thought I would see the day that my portfolio would lose 30 percent of its value and that some of my investments would dip below my cost basis (below the purchase price). But I'm not shocked. Ticked off, but not shocked. Losing money when you invest is always a possibility.

I'm encouraged that the nation's three major financial planning organizations — the Certified Financial Planner Board of Standards, the Financial Planning Association, and the National Association of Personal Financial Advisors — have said they are working together to promote more consumer protections.

Those three organizations expect reform in the financial services industry when Congress convenes in January.

"We are very pleased to have opened positive lines of communications within the financial planning community to discuss an issue that is so critical to consumer protection," the group said in a joint statement. "The global financial crisis will require comprehensive review of the regulatory structure by Congress."

The CFP Board (for more information, go to www.CFP.net or call 800-487-1497) owns the certification marks "CFP" and "certified financial planner." The Financial Planning Association (www.FPAnet.org or 800-322-4237) has 100 chapters throughout the country representing more than 28,500 providers of financial planning services. The National Association of Personal Financial Advisors (www.napfa.org or 847-483-5400) represents 2,000 fee-only financial planners.

The three organizations said that in the coming months they'll solicit feedback on future regulation of the financial planning profession.

I have some feedback on what Congress might do. And hey, I suggest you do the same. Let these groups know about your experience with financial planners. Tell them — and your congressional representatives — what regulation you think is needed. This deepening recession provides a good opportunity for regular folks to weigh in and maybe, just maybe, get some meaningful reform.

One thing the government can do to regulate the financial planning industry is get rid of the litany of three-letter alphabet-soup designations and require one certification. Currently, there is no one government-sanctioned standard or accreditation process for the profession.

Anybody can call himself or herself a "financial planner." Bankers, brokers, insurance agents, and accountants can set up shop and claim they will help you manage your money. The title of financial planner in too many cases is donned by someone who is really a salesperson whose main agenda is to get you to buy a financial or investment product.

A federally regulated and licensed designation for financial planners should make it clear that a planner has the fiduciary responsibility to look out for your best financial interest — not the planner's bottom line.

The law should define financial planning, and there ought to be hard-hitting penalties for compliance infractions.

Many financial planners are doing right by their customers. But when the recession ends — and it will — and the stock market begins to recover, people should be able to get financial planning advice from someone with three letters behind his or her name that would help reduce fraud, incompetence and conflict of interest.

Reach Michelle Singletary at singletarym@washpost.com.