FINRA, SEC, NASAA launch investor protection initiative


Financial Industry Regulatory Authority (FINRA) officials said the organization has partnered with a pair of entities as a means of providing additional investor protection.

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FINRA, the North American Securities Administrators Association (NASAA) and the Securities and Exchange Commission’s Office of Investor Education and Advocacy (SEC OIEA) have initiated a campaign encouraging investors to provide financial firms with a trusted contact.

The groups indicated a trusted contact is defined as an individual authorized by an investor to be contacted by their financial firm in limited circumstances — such as concerns about activity in the investor’s account or if the firm has been unable to reach the investor after numerous attempts.

“Investor protection is at the core of FINRA’s mission and this collaborative effort with NASAA and the SEC OIEA reflects our shared commitment to better inform and protect investors,” FINRA President and CEO Robert Cook said. “All investors can benefit from adding a trusted contact to their account — having one or more trusted contacts provides another layer of security on the account and puts the financial firm in a better position to help keep the account safe.”

The campaign includes a new webpage detailing the manner in which a trusted contact could help investors when the firm cannot reach them, while an infographic reminds investors that financial firms may reach out to trusted contacts only in limited circumstances.

“We are pleased to work collaboratively with our counterparts at FINRA and with SEC staff to provide this important resource in the hope that it will promote greater investor security,” NASAA President and Maryland Securities Commissioner Melanie Senter Lubin said.

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