Post on 19-Aug-2020
Better Financial Decision Making: From Helplines to Research and Action
IEC Financial Literacy Forum 2017
10 March 2017
Hong Kong
Who Are We?
FINRA:
• Non-profit, non-governmental regulator
• Empowered by US Congress
• Mission: investor protection and market integrity
FINRA Foundation:
• Research and outreach
• Focus on building financial capability for all Americans
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1. FINRA’s regulatory initiatives to protect older investors from financial exploitation
2. Educational responses
3. Potential for replicability in Hong Kong
Today’s Topics
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Regulatory Initiatives 1
8,000+ calls
> $2.9 million to customers
Toll-free
Staffed by examiners
FINRA Securities Helpline for Seniors FINRA Securities Helpline for Seniors
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Types of Calls We Receive
1. Simple questions: What is an annuity? How can I find information on my broker?
2. Dealing with Death: Children of deceased ask how to locate assets or retitle accounts
3. Sales practice issues: Complaints about poor service, unauthorized transactions, and more
4. Potential fraud: Questions about suspicious activity
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Building Awareness
Press release
Collaborations with other organizations:
• AARP Foundation’s “Fraud Watch Network”
• Consumer Financial Protection Bureau
Promotion through social media, syndicated articles and alerts
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Require firms to attempt to collect
alternate contacts for investors
Allows firm to place temporary hold on
disbursements of funds or securities when fraud
is suspected
New Rules for Senior Investors
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Educational Responses: Research and Action 2
Topics & Context for New Alerts
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Helpline & Education: Similarities
Both the Helpline and FINRA/Foundation efforts:
• Provide an effective way to reach investors with unbiased information on specific issues
• Prohibit staff from giving investors advice
• Offer the opportunity for FINRA to obtain regulatory intelligence
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Helpline & Education: Differences
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Educational Effort Helpline
Motivation Desire to learn Problem to be solved
Audience scope All investors and financial consumers
Typically seniors
Range of topics Credit and debt, saving and investing, life goals (e.g., retirement), avoiding scams
Securities products and investment professional conduct, estate planning
Approach Proactive outreach, often through partners
Reactive intake, often followed by outreach to firms
Success Measures
Various metrics (change in knowledge, attitude or behavior)
Narrower metrics (recovery of funds, problem resolved)
The FINRA Investor Education
Foundation empowers underserved
Americans with the knowledge, skills
and tools to make sound financial
decisions throughout life.
Mission:
The FINRA Investor Education
Foundation envisions a society
characterized by universal financial
capability and well-being.
Vision:
Goals
Goal 5
Optimize the
Foundation’s
human, social and
financial capital
Goal 1
Protect consumers
from financial fraud
and ameliorate the
consequences
of fraud
Goal 2
Advance military
financial readiness
Goal 3
Foster sustainable
financial education in the
community and at the
workplace
Goal 4
Track, understand
and communicate
Americans’
financial capability
• The nation’s strength depends on a
financially capable populace.
• Financial capability is defined not
only by knowledge and skill, but
also by opportunity and access.
• Investing is essential for long-term
financial security.
• Integrity and paramount concern
for the consumer are hallmarks of
effective financial education.
• Improving financial capability and
well-being requires both individuals
and communities to take action.
Values & Beliefs:
FINRA Foundation Goals
New Research: April 2016
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Heightened Emotion & Susceptibility
“Targeting Investment Fraud”
• 32 trainings since November 2012
• 1,200+ law enforcement personnel from 460 different federal, state and local agencies
• Combines investigative techniques and prevention strategies
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Collaboration with National White Collar Crime Center
Evaluation
• 92.9% of attendees reported increased knowledge and skill set
• 74.5% reported enhanced job performance
• 89.4% would attend an advanced training
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Outreach to Victim Advocates
• 4,400+ victim advocates since 2013
• Empower and equip front-line responders to better assist victims of a range of financial scams and frauds
• Distributed 8,525+ guides in 2016 alone
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National Center for Victims of Crime
Replicability in Hong Kong 3
Key Considerations
• Identify the “problem” or the need
• Consider baseline existing resources/tools
• Assess alternatives
• Recruit and train experienced staff
• Set expectations for callers
• Identify collaboration partners who will:
• Help drive volume
• Serve as escalation or referral resources
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Questions?
Gerri Walsh
President, FINRA Investor Education Foundation
SVP, FINRA
investoreducation@finra.org
+1 202 728 6964
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Better Financial Decision Making: From Helplines to Research and Action
IEC Financial Literacy Forum 2017
10 March 2017
Hong Kong