Washington State Depart ashington State Department of ment of - - PowerPoint PPT Presentation

Washington State Depart ashington State Department of ment of Financial Inst Financial Institutions itutions Secur Securities Division ities Division Kr Kristen Standifer, isten Standifer, F Finan inancial cial Legal E egal Exam xaminer iner

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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.

TODA ODAY’S P Y’S PRESE RESENT NTER:

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 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

Discla isclaime imers rs

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YOU CAN Protect Yourself from Financial

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VERIFY BEFORE You Buy Contact DFI

• Description of DFI
• Protect Yourself-Tips on Avoiding Becoming a Victim of

Financial Fraud

• Resources
• Questions

Age Agenda nda

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What is the Depar hat is the Department of tment of Financial Inst Financial Institutions? itutions?

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• A

A st 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

Depa epartm rtment of Fin ent of Financia ancial In Inst stitutions tions Lice

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• Licenses

nses and nd reg egul ulat ates es ch check eck cashi cashier ers, s, escr escrow

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agent gents, s, money

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ansmitter ers, s, mor

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gage ge br broke

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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

• f a

a frau aud d by by one ne of

• f these

hese types ypes of

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entities, es, cont contact ct the he Con

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sumer er Ser ervi vices ces Divisi sion

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at 36 360- 0-902- 902-87 8703 03 or

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nline e at at www.df dfi.wa. a.gov gov

Consu

• nsume

mer S r Servi rvices Divi ces Division sion

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• 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 Se Secu curi rities s Admi minist stra rators rs Asso ssoci ciation (“N (“NAS ASAA”) AA”)

Secu Securi rities Divi es Division sion

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Why hy We C We Care are

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• DFI and its regulatory partners take

financial exploitation seriously

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Why y We C Care

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Why y We C Care

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Why y We C Care

Pr Protect Yourself

• tect Yourself (and othe

(and others) rs)

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Ver erify y indi ndivi vidual dual is s licensed censed or

• r 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

• n at

at 1-877- 77-RING-DFI FI

Ver Verify B ify BEFORE Y EFORE YOU BUY OU BUY

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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

Ver Verify B ify Before re You You Buy Buy

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• Make

ake an an invest vestment ent plan an

• Bu

Budget yo 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

• r the

he fol

• llow
• wing

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

Make ake a P Pla lan

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• Bei

eing ng pressur ssured ed int nto invest nvesting ng is s a a red ed flag

• You
• u sh

shoul

• uld

d have ave time e to

• ask

ask quest uestion

• ns

s and and make ake a a though

• ughtful

ul deci ecision

• n

Take Your ake Your Tim Time to Deci e to Decide de

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• Ask

Ask quest 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

Ask Q Ask Questions uestions

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• 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

Ask Q Ask Questions uestions

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• 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

Resea esearch rch, Re Resea search, Re rch, Resear search ch

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• A strang

A stranger that ca er that calls you a lls you and ask nd asks you to s you to invest in invest in somethin something sho 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

• pportunity,

tunity, however

• wever 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

• works at the

s at the A Att ttor

• rney

ney Gener General’s al’s Office/DF ffice/DFI befo I before I e I invest vest

Be War Be Wary of Tel y of Teleph ephone

• ne

Sol Solicitatio icitation

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• 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

Just ust Say NO! Say NO!

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Pr Practice Saying NO! actice Saying NO!

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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

Pr Protect your

• tect yourself

self

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• Drive by th

Drive by the office 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

Ver Verify B ify Before re You You Buy Buy

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• Be extra

Be extra skeptica skeptical if the l if the salespe salesperson ask rson asks you to s you to keep a keep a secret secret

• Anothe

Another person 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

Talk to a family frien family friend or a d or a trusted p trusted professio rofessional nal

Talk to S alk to Someo meone B ne Before fore You You In Invest vest

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http://www.dfi.wa.gov/financialeducation/information/investi ng

DFI: FI: Edu Educate cate

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Consume Consumer Protectio 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

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Other Re ther Resources- sources-CP CPW

Othe Other Re r Resour sources- ces-EIFF IFFE

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• Th

The Elder Invest stment Fr Fraud and Fi Financi cial Exp xploitation Program is s a co collaboration between st state and federal agenci cies

• Program provi

vides s reso source ces s for medica cal pract ctitioners, s, APS worke kers, s, and se seniors

• Exa

xamples: s:

• Broch

chure: se senior educa cation

• Broch

chure: ABCs s of financi cial fraud for APS professi ssiona

• Video: Elder Inve

vest stment Fr Fraud

• FINRA

INRA Securities Helpline for Securities Helpline for S Senior eniors

• 1-844

844-574- 574-3577 3577 (or

• r 1-

1-84 844- 4-57 57-HE HELP LPS)

• Senio

enior inves investor tors s receive eceive help with help with their their br broke

• kerage

age account q ccount questions f uestions from

• m F

FINR NRA sta staff ff

• For
• r m

mor

• re infor

e information see: tion see: http://www. ttp://www.finr finra.o a.org/inve g/investor stors/ s/finr finra- a-secur securities- ities-he helpli line- e- senior eniors

Othe Other Re r Resour sources- ces- FINRA INRA

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YOU ARE NOT T ALONE

Don’

• n’t F

Forg

• rget…

et…

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Reach ou ach out to the Se t to the Securities Division curities Division AS SOON AS POSS AS SOON AS POSSIBLE IBLE www.d ww.dfi.wa.gov fi.wa.gov 1-877-RING-DFI 1-877-RING-DFI

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If If yo your organizatio ur organization is i n is interested in terested in hosting a hosting a presenta presentation, plea tion, please conta se contact ct Kri Krist sten Stan en Standifer difer 360-902 360-902-8746

• 8746

kstandifer@ kstandifer@dfi.wa.go dfi.wa.gov

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VERIFY BEFORE You Buy Contact DFI

Questions uestions

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