Investor Rights
Reaching Out to Women Investors
NASAA's Women in Transition program is a new investor education initiative designed to empower women investors to take control of their financial futures. Many women face particularly daunting money challenges during periods of financial transition — marriage, divorce, job loss, retirement, sending kids off to college, and other changes to their own or their family’s financial circumstances. Through specifically tailored investor education resources, on-site presentations to women's groups and a public awareness campaign, NASAA aims to help women invest with confidence and steer clear of investment fraud. Visit this very informative website by clicking on http://www.nasaa.org/investor_education/13182.cfm
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A Question of Trust
A study from the MetLife Mature Market Institute (MMI), the National Committee for the Prevention of Elder Abuse, and the Center for Gerontology at Virginia Polytechnic Institute and State University has warned that the increased aging of the population, social changes, and technology advances will lead to a dramatic increase in the opportunity for a growing level of elder financial abuse.
The study notes that the perpetrators of elder financial abuse are typically not strangers and most are people who have gained the trust of the older individual, including business and service professionals and family members. They can be as close as a neighbor, or friend, as distant as an invisible voice on the telephone or an e-mail from the other side of the globe.
"Elders’ vulnerabilities and larger net worth make them a prime target for financial abuse and the victims of elder financial abuse come from all walks of life, and this type of abuse affects elders regardless of gender, race, or ethnicity," the study reports.
Aging Women: Prime Targets for Elder Financial Abuse
According to the study, women experience elder financial abuse more than men. Since women tend to live longer than men, there are a greater number of older women than older men in the population. Women who have not been in a position to make financial decisions may be more trusting in the advice of others, particularly if they are new at seeking financial advice. Women with cognitive problems may be easily influenced by others, especially if that influence increases in intensity and becomes a “hard sell,” the study warns.
Common Types of Financial Fraud
- Life and health insurance misrepresentation or theft
(single perpetrators or a sophisticated group or ring) - Predatory lending
- False investment claims
- “Get rich quick” schemes
- Credit card bailouts
- Home loan bailouts
The study provides a comprehensive understanding about the extent and implications of elder financial abuse and provides some recommendations of ways to potentially mitigate this complex and devastating crime: Report it
When in doubt, the study notes, it is always better to err on the side of caution and report suspected financial abuse to the appropriate agencies such as Adult Protective Services, a law enforcement agency, or compliance department of the financial institution.
Reports can be made confidentially and the reporting person is protected from civil and criminal liability. Strategies to Avoid Financial Fraud Successful prevention of elder financial abuse involves multiple strategies, the study notes. There are a variety of actions individuals, family members, financial service professionals, businesses, and organizations can do to help protect elders from getting tangled in the web of elder financial abuse. Precautions to avoid falling prey to financial abuse include:
Stay Organized
- Keep belongings neat;
- Keep track of possessions;
- Open and send your own mail;
- Direct deposit Social Security and other checks;
- Complete and sign your own checks whenever possible;
- Use an answering machine to screen calls
- Do not provide personal information over the telephone.
Stay Informed
- Consult with an attorney about future plans, including a power of attorney;
- Consult with an attorney about caregiving arrangements;
- Review your will;
- Know where to go if you suspect abuse;
- Ask for help from police, from employees at a bank, from Adult Protective Services, if needed.
- Stay Alert
- Do not leave items of value out in the open;
- Do not sign any document unless someone you trust reviews it;
- Do not be left out of decisions about your finances.
Families, particularly those who find themselves in a caregiving role, also need to be aware of situations that place their older loved ones at risk for financial abuse. Family members should periodically inquire about their older family members’ financial resources and perceived limitations that may stem from their financial situation, the study notes. Monitor for such things as:
- Unusual worry about finances or fear of an individual
- Unexplained trembling or crying
- Changes in communication patterns
- Any abrupt change in behavior
- Overpayment for goods and services
- Unnecessary services or household repairs
- A set of “out-of-sync” check numbers
- Increased ATM activity
- Unusual cash withdrawals from a financial account in a short period of time
- Missing belongings from the home or room in a facility
- Excessive time spent on the Internet
- A signature that seems forged, unusual,or suspicious
- An unexplained reduction in bank accounts
- An increase in the number and amount of credit card accounts
At the securities fraud law firm of Mark A. Tepper P.A. we are actively involved in advising individual investors in evaluating their legal options when confronted with investment losses in their retirement or personal portfolios. To have a free consultation about your legal rights: Call now to (954) 961-0096 to speak with securities fraud attorney Mark A. Tepper or email askmark@marktepper.com.
FINRA to Make Additional Information About Brokers, Former Brokers Publicly Available Through BrokerCheck
Full Records of Brokers Leaving Industry to Remain Available for 10 Years; Criminal Convictions, Civil Injunctions, More to Remain Available Permanently
WASHINGTON — The amount of information available to the public about current and former securities brokers hasl expanded significantly, since the Financial Industry Regulatory Authority (FINRA) implemented changes to its free, online BrokerCheck service recently approved by the Securities and Exchange Commission.
The changes will increase the number of customer complaints reported publicly; extend the public disclosure period for the full record of a broker who leaves the industry from two years to 10 years; and, make certain information about former brokers available permanently, such as criminal convictions and certain civil injunctive actions and arbitration awards against the broker.
The changes will also formalize a dispute process for current or former brokers to dispute the accuracy of, or update, factual information disclosed through BrokerCheck.
"This additional information will benefit investors who are considering whether to conduct, or continue to conduct, business with a particular securities firm or broker," said FINRA Chairman and CEO Rick Ketchum. "Just as important, it will provide valuable information about persons who have left the securities industry, often not of their own accord, who have established themselves in other segments of the financial services industry and can still cause great harm to the investing public."
BrokerCheck expansion is now implemented, and using BrokerCheck will provide the following information, at no cost:
- Disclose all "historic" complaints against a broker dating back to 1999, when electronic filing of broker information began. Generally, historic complaints are customer complaints, arbitrations or litigations more than two years old that have not been adjudicated or have been settled for an amount less than the reporting requirement (currently $15,000). They are currently reported on BrokerCheck when the broker has three or more currently disclosable regulatory actions, customer complaints, arbitrations, litigations or historic complaints. The expanded BrokerCheck will disclose all historic complaints dating back to 1999 for individual brokers who are currently registered or whose registrations were terminated within the preceding 10 years.
- Expand the disclosure period for former brokers. Currently, a broker's record is publicly available for two years after he or she leaves the securities industry. That two-year period coincides with the period in which an individual remains subject to FINRA's jurisdiction and within which an individual can return to the industry without having to take re-qualifying exams. The expanded BrokerCheck will make a former broker's record public for 10 years, so investors can access information about individuals who may work in other sectors of the financial services industry or who have attained other positions of trust.
- Further expand the amount of information that is permanently available on former brokers. Last year, BrokerCheck started making information about final regulatory actions (i.e. bars, suspensions, fines, etc.) against former brokers permanently available to the public. The expanded BrokerCheck will make additional information that has been reported to FINRA since 1999 permanently available – including reportable criminal convictions or pleas of guilty or nolo contendere; civil injunctions or findings of involvement in a violation of any investment-related statute or regulation; and, arbitration awards or civil judgments based on the individual's involvement in alleged sales practice violations.
- Formalize the process for current and former brokers to dispute the accuracy of factual information disclosed through BrokerCheck. Brokers will be able to submit a written notice of the dispute to FINRA – FINRA will post the appropriate form on its website – with all available supporting documentation. If FINRA determines that the dispute is eligible for investigation, it will add a general notation to the broker's BrokerCheck report stating that the broker is disputing certain information in the report – and that notation will only be removed when FINRA has resolved the dispute. If its investigation shows the information is in fact inaccurate, FINRA will update, modify or remove that information as appropriate.
Use this link to check on the history of your broker: http://www.adviserinfo.sec.gov/(S(srz23vi5hx2i5s555okjpp45))/IAPD/Content/IAPDMain/iapd_SiteMap.aspx
FINRA is the largest non-governmental regulator for all securities firms doing business in the United States. FINRA is dedicated to investor protection and market integrity through effective and efficient regulation and complementary compliance and technology-based services. FINRA touches virtually every aspect of the securities business – from registering and educating all industry participants to examining securities firms, writing and enforcing rules and the federal securities laws, informing and educating the investing public, providing trade reporting and other industry utilities, and administering the largest dispute resolution forum for investors and registered firms. Additional information, is available at the website at http://www.finra.org/.
INVESTOR RIGHTS are easily lost when investors sit on their rights. Don’t learn the hard way that your opportunity to recover has been lost because you waited too long to call an attorney.
The following INVESTOR BILL OF RIGHTS is provided by the North American Securities Administrators Association(NASAA)
When You Invest, You Have the Right to:
Ask for and receive information from a firm about the work history and background of the person handling your account, as well as information about the firm itself.
Receive complete information about the risks, obligations, and costs of any investment before investing.
Receive recommendations consistent with your financial needs and investment objectives.
Receive a copy of all completed account forms and agreements.
Receive account statements that are accurate and understandable.
Understand the terms and conditions of transactions you undertake.
Access your funds in a timely manner and receive information about any restrictions or limitations on access.
Discuss account problems with the branch manager or compliance department of the firm and receive prompt attention to and fair consideration of your concerns.
Receive complete information about commissions, sales charges, maintenance or service charges, transaction or redemption fees, and penalties.
Contact your state or provincial securities agency in order to verify the employment and disciplinary history of a securities salesperson and the salesperson's firm; find out if the investment is permitted to be sold; or file a complaint.
The following websites will provide further information:
Senior Investment Fraud News & Alerts from NASAA, Click below for the link to the latest news and scams: http://www.nasaa.org/investor_education/senior_investor_resource_center/5025.cfm
NASAA President's Statement at SEC Seniors Summit - Protecting Senior Citizens Against Investment Fraud http://www.nasaa.org/NASAA_Newsroom/Current_NASAA_Headlines/4998.cfm
Analyzing Analyst Recomendations www.sec.gov/investor/pubs/analysts.htm
NASAA's 12 Question Quiz to Avoid Being a Victim http://www.nasaa.org/investor_education
Central Registration Depository System (CRD) (and how to check out your broker's history) www.nasaa.org and click on Contact Your Regulator in the left hand column.
NASAA offers information on the following topics through their website at http://www.nasaa.org/investor_education
• Top 10 Scams, Schemes & Scandals
• How to Contact Your State Securities Regulator
• How to Spot a Con Artist
• How to File a Complaint
• Know Your Rights as an Investor
• Financial Education Resources
We offer a no-cost initial consultation via telephone to (954) 961-0096 or email askmark@marktepper.com
