Kristen Standifer, Financial Legal Examiner 1 Kristen Standifer is - PowerPoint PPT Presentation

Kristen Standifer, Financial Legal Examiner 1

Kristen Standifer is a Financial Legal Examiner in the Securities Division of the Washington State Department of Financial Institutions where she handles regulatory compliance issues involving investment advisers, broker dealers, and their representatives. She also provides education and outreach regarding regulatory compliance, fraud, and consumer protection of the elderly and vulnerable populations. She works with AARP; the Financial Industry Regulatory Authority, commonly referred to as FINRA; and other state agencies to educate seniors on protecting themselves from financial fraud. Kristen previously worked at the Office of the Attorney General where she litigated issues related to medical malpractice, health care, and senior abuse. Kristen was a financial analyst prior to obtaining her law degree. 2

 The comments and opinions expressed today are solely the presenter’s comments and opinions and do not necessarily reflect those of the Department of Financial Institutions, its management, or anyone associated with the Department of Financial Institutions  DFI cannot give legal or financial advice, and we do not endorse or recommend any person, product, or service 3

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Description of DFI • Protect Yourself-Tips on Avoiding Becoming a • Victim of Financial Fraud Resources • Questions • 6

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A A state e agency ncy that provid vides es regulator latory y oversi rsight ght • for Washington’s financial services providers Four r Divi visions: sions: Banks, s, Credit t Unions, ons, Consum umer r • Ser ervi vice ces, s, an and Sec ecuri rities ties Ou Our website ite is: www.df dfi. i.wa wa.gov gov • 8

 License cense  Re Regulate ate  Protec tect  Educate cate 9

Lic icenses ses and regu gula lates tes check cashi hier ers, s, • escr crow age gents, s, money ey tra ransmitte smitters, rs, mortga gage ge brokers, s, payda day y le lender ers, s, and d others If you thin ink you may be • vic ictim im of a fr fraud d by one of these se types s of entiti ities, es, contact t the Consum sumer er Se Servic ices es Div ivis isio ion n at 360 360- 902 902-8703 8703 or on onli line e at www.d .dfi fi.w .wa. a.gov gov 10

Th There is one federal ral regula lator tor of secur curitie ities: s: the • Securities and Exchange Commission (“SEC”) Th There are 50 50 state e regul ulators ators of secu curi rities ties and we • all belong ong to an organization nization ca called d the North th Amer erican ican Sec ecuri rities ties Admini inistrator strators s Association ciation (“NASAA”) 11

Wh Why We We Ca Care re 12

• DFI and its regulatory partners take financial exploitation seriously 13

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Ve Verif ify y in indiv ivid idual ual is is li licensed sed or ex exemp mpt: t: -www.finr .finra. a.com/ m/bro broker erchec check -FINR NRA (24 240) 0) 38 386-HE HELP -Se Securit itie ies s Div ivis ision ion at 1-877 877-RING-DFI FI 17

Verif rify y a s security curity is registered gistered or exempt empt from m registr gistration ation -www.dfi.w w.dfi.wa.go a.gov -Securities curities Divisio vision n at 1-877 877-RING RING-DFI DFI - At the SEC’s website: www. ww.edgar edgar.com .com 18

Make an in investme estment nt pla lan n • Budget et yo your r investme vestments nts for the e ye year ar • If an in invest estmen ment t comes s up mid id-ye year ar that t is is • not in in your budg dget et, , conside ider r it it f for the foll llowing ing year In the meanti ntime: me: • Re Resea earch ch the e inves estmen tment t • Ob Obtain in the investment estment details ils in writing ing • Verify fy all inform ormation ation prov ovide ided • 19

Bein ing g pressur ssured ed in into in investi esting ng is is a re red fla lag • You shoul uld d have e tim ime to a ask quest estion ions s and d • make a t thoug ughtfu htful l decis ision ion 20

Ask questi stions ons and make e sure you understa erstand nd the • an answer er Conti tinue nue to ask the questi stion on in diffe ferent rent ways • until il you unders erstand tand the answer 21

What t are the fees and co costs ts • What t are the terms s of the inve vestm stmen ent • Ri Risk- what type? ? Marke ket t risk? ? Ot Other er risks? ks? • Re Return • Re Restricti ictions ons on withdrawal hdrawals, s, lock ck-up • period, od, or surre render nder ch charges ges 22

Verify fy all signifi nifica catio tion n inform ormation ation ca causing ing you to • wan ant to inves vest ALL INFORM RMATI TION • Research Re ch all inve vestm stments, nts, even n where re the • sal alespe esperson rson is a f a friend end or is rec ecommen ommended ded by y a a friend nd 23

A stran anger ger that calls you and asks ks you u to • invest vest in something mething should ould be e reg egard arded ed wi with the utmost ost skep kepti ticism ism Ha Have ve your r script pt ready ady, , exampl ple: e: • Thank nk you for r the opportun portunity, ity, • howe wever ver I must t discuss scuss this is informati formation on with th my son/daught n/daughter er who works at the Attorney General’s Offi fice/DFI ce/DFI before fore I invest vest 24

It’s ok to say “NO!” to a telephone solicitor • Better yet, ask so many questions that they • hang up on you and never want to call back 25

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Ask for references and then call the • references Perform an internet search of the • company and the important people associated with the company 28

Drive ve by the office • Make sure it exists and is what you expect • If the company is relying on attorneys, • accountants, or any other third party for material information, verify the third party exists and prepared the information Always remember that a third party’s advice is only • as good as the information the third party is given 29

Be Be extra a skepti eptical cal if the • salesp esperson erson asks sks you to keep ep a secret cret Another ther person rson may be • able e to point nt out red d flags gs you missed sed Talk to a fami Ta mily y frien end d or • a trusted usted professional fessional 30

http://www.dfi.wa.gov/financialeducation/information/investing 31

Consumer sumer Pr Protecti ection on Wa Washi shingt ngton on Better Business Bureau Secretary of State Office of Attorney General Federal Trade Commission Labor and Industries Office of Insurance Commissioner Utilities and Transportation Commission Department of Financial Institutions 32

• The he Elder er Investmen vestment t Fraud aud and d Fina nancia cial l Explo loit itat atio ion n Program gram is a coll llabora boratio tion between ween state e and d feder eral al agen encie cies • Program ram provides vides resourc ources for medica dical l practition ctitioner ers, s, APS wor orker kers, s, and nd senio iors rs • Example amples: • Broc ochure: e: senio nior educ ucatio ion • Broc ochure: e: ABCs Cs of financia nancial l fraud ud for APS profes essi sional als • Video eo: : Elder der Inves estm tmen ent Fraud aud 33

FINRA NRA Securities curities He Helpline pline fo for r Senio iors rs • 1-844 44-574 574-35 3577 77 (or r 1-844 44-57 57-HELP HELPS) • Se Senior nior investo vestors rs receive ceive help lp with th their eir bro rokerage erage • accoun ount t questions estions from om FINRA NRA staff ff For r more re informati formation on see: : • http: tp:// //www. www.finr finra.or a.org/ g/in investors/finr vestors/finra-secur securiti ities es- help lpli line ne-seni seniors ors 34

YOU ARE N NOT A ALONE 35

Reach ch ou out t to to the the Se Securities urities Division vision AS SOO OON N AS POS OSSIBLE SIBLE ww www.d w.dfi.wa.gov fi.wa.gov 1-877 877-RING RING-DFI DFI 36

If If yo your ur or orga ganization nization is int ntere rested sted in n ho hosti ting ng a prese senta ntation, tion, pleas ease e con onta tact ct Krist isten n Sta tandifer ndifer 360-902 360 902-8746 8746 ks ksta tandifer ndifer@dfi @dfi.wa.go .wa.gov 37

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