Washington State Depart ashington State Department of ment of Financial Inst Financial Institutions itutions Secur Securities Division ities Division Kristen Standifer, Kr isten Standifer, F Finan inancial cial Legal E egal Exam xaminer iner 1
TODA ODAY’S P Y’S PRESE RESENT NTER: 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
Discla isclaime imers rs 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
YOU CAN Protect Yourself from Financial 4
VERIFY BEFORE You Buy Contact DFI 5
Agenda Age nda Description of DFI • Protect Yourself-Tips on Avoiding Becoming a Victim of • Financial Fraud Resources • Questions • 6
What is the Depar hat is the Department of tment of Financial Inst Financial Institutions? itutions? 7
Depa epartm rtment of Fin ent of Financia ancial In Inst stitutions tions Lice icense se. Re . Regula late te. E Educa cate te. P . Prote tect. ct. A st A state agency cy that pro rovi vides s re regulatory ry ove versi rsight for • Wash shington’s s financi cial se servi rvice ces s pro rovi viders rs Four r Divisi sions: s: Ba Banks, ks, Cre redit Unions, s, Consu sume mer • Se Servi rvice ces, s, and Se Secu curi rities Our r websi site is: s: www.dfi.wa.gov • 8
DFI. FI. How Ca ow Can We Hel n We Help Y p You? u? Lice cense ü Regulate ü Pro Protect ct ü Ed Educa cate ü 9
Consu onsume mer S r Servi rvices Divi ces Division sion Licenses nses and nd reg egul ulat ates es ch check eck cashi cashier ers, s, escr escrow ow • agent gents, s, money oney transm ansmitter ers, s, mor ortga gage ge br broke okers, s, payday ayday lender nders, s, and nd other hers If you you thi hink nk you u may ay be e vi vict ctim • of a a frau aud d by by one ne of of these hese types ypes of of ent entities, es, cont contact ct the he Con onsum sumer er Ser ervi vices ces Divisi sion on at 36 360- 0-902- 902-87 8703 03 or or onl nline e at at www.df dfi.wa. a.gov gov 10
Securi Secu rities Divi es Division sion There re is s one federa ral re regulator r of se secu curi rities: s: the • Se Secu curi rities s and Exch Exchange Commi mmissi ssion (“SEC (“SEC”) ”) There re are re 50 st state re regulators rs of se secu curi rities s and we all • belong to an org rganization ca called the Nort rth Ame meri rica can Secu Se curi rities s Admi minist stra rators rs Asso ssoci ciation (“N (“NAS ASAA”) AA”) 11
Why hy We C We Care are 12
Why y We C Care • DFI and its regulatory partners take financial exploitation seriously 13
Why y We C Care 14
Why y We C Care 15
Pr Protect Yourself otect Yourself (and othe (and others) rs) 16
Verify B Ver ify BEFORE Y EFORE YOU BUY OU BUY Ver erify y indi ndivi vidual dual is s licensed censed or or exe exempt pt: - www.finr nra. a.co com/broker kercheck check - FI FINRA (240) 40) 38 386- 6-HELP - Secur ecurities es Divi visi sion on at at 1-877- 77-RING-DFI FI 17
Verify B Ver ify Before re You You Buy Buy Verify a ify a se secu curity is s registe istered or e exe xempt t fr from registr istratio tion - www.d ww.dfi.wa.g .gov - Secu curities Di s Divisio vision a at 1 t 1-877-RING- G-DF DFI - At t t the S SEC’s we ’s website site: : www.e ww.edgar.co .com 18
Make ake a P Pla lan Make ake an an invest vestment ent plan an • Budget yo Bu your r inve vest stme ments s for r the ye year • If an an invest vestment ent co comes s up up mid- d-year year tha hat is s not not • in your your bu budget dget, consi conside der it for or the he fol ollow owing ng ye year ar In n the e meant eantime: e: • Rese search the inve vest stme ment • Obtain the inve vest stme ment details s in wri riting • Ve Veri rify y all informa rmation pro rovi vided • 19
Take Your ake Your Tim Time to Deci e to Decide de Bei eing ng pressur ssured ed int nto invest nvesting ng is s a a red ed flag • You ou sh shoul ould d have ave time e to o ask ask quest uestion ons s and and • make ake a a though oughtful ul deci ecision on 20
Ask Questions Ask Q uestions Ask quest Ask stions s and ma make ke sure re yo you underst rstand the • answ swer Continue to ask sk the quest stion in differe rent ways ys until yo you • underst rstand the answ swer 21
Ask Questions Ask Q uestions What are re the fees s and co cost sts • What are re the terms rms of the inve vest stme ment • Risk- sk- what typ ype? Ma Marke rket ri risk? sk? Other ri risks? ks? • Return rn • Rest stri rictions s on withdra rawals, s, lock-u ck-up • peri riod, or r su surre rrender r ch charg rges 22
Resea esearch rch, Re Resea search, Re rch, Resear search ch Ve Veri rify y all si significa cation informa rmation ca causi sing yo you to want to • inve vest st All in ll info formatio tion • Rese search all inve vest stme ments, s, eve ven where re the sa salesp sperso rson • is s a friend or r is s re reco comme mmended by y a fri riend 23
Be Wary of Tel Be War y of Teleph ephone one Sol Solicitatio icitation A stranger that ca A strang er that calls you a lls you and ask nd asks you to s you to invest in invest in • something sho somethin g should b uld be rega e regarded rded with the with the utmost utmost skepticism skepticism Have yo Have your script rea ur script ready, exa dy, example: mple: • Than hank you for k you for the the oppor opportunity, tunity, • however owever I m I must discuss t st discuss this his in infor formation with ation with m my so y son/daugh n/daughter ter wh who wor o works at the s at the A Att ttor orney ney Gener General’s al’s Office/DF ffice/DFI befo I before I e I invest vest 24
Just ust Say NO! Say NO! 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
Pr Practice Saying NO! actice Saying NO! 26
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Protect your Pr otect yourself self Ask for references and then call the • references Perform an internet search of the • company and the important people associated with the company 28
Ver Verify B ify Before re You You Buy Buy Drive by the office Drive by th e 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
Talk to S alk to Someo meone B ne Before fore You You In Invest vest Be extra skeptica Be extra skeptical if the l if the • salespe salesperson ask rson asks you to s you to keep a keep a secret secret Another person Anothe r person may be may be • able to able to poin point out re t out red flags d flags you misse you missed Talk to a family frien Talk to a family friend or a d or a • trusted professio trusted p rofessional nal 30
DFI: FI: Edu Educate cate http://www.dfi.wa.gov/financialeducation/information/investi ng 31
Other Re ther Resources- sources-CP CPW Consumer Protectio Consume r Protection Wash n Washington ington 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
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