Better Financial Decision Making: From Helplines to Research and … · 2017. 5. 4. · The FINRA...

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

Copyright FINRA 2016 | 2

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


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


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


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


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


Educational Responses: Research and Action 2

Topics & Context for New Alerts


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


Helpline & Education: Differences


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


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


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


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


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


Questions?

Gerri Walsh

President, FINRA Investor Education Foundation

SVP, FINRA

[email protected]

+1 202 728 6964


mailto:[email protected]

Better Financial Decision Making: From Helplines to Research and Action

IEC Financial Literacy Forum 2017

10 March 2017

Hong Kong

Better Financial Decision Making: From Helplines to Research and … · 2017. 5. 4. · The FINRA...

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