Federal and state securities regulators are launching a new effort aimed at providing investors with additional protection on their accounts.
In a news release, the Financial Industry Regulatory Authority and the North American Securities Administrators Association announced a campaign encouraging investors to provide their financial firms with a trusted contact. This individual would be authorized to be contacted by the firm in case of suspicious activity in the investor’s account, or if the firm has not been able to reach the investor after making several attempts.
A trusted contact can be a family member, an attorney, an accountant, or another third party who can be relied upon to handle the responsibility. According to FINRA, a trusted contact adds another layer of safety to accounts and puts financial firms in a better position to keep accounts secure.
The campaign by FINRA and NASAA will include collaboration by the U.S. Securities and Exchange Commission’s Office of Investor Education and Advocacy.
“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,” said FINRA President and Chief Executive Officer Robert Cook.
The campaign will feature a new webpage, infographic and video providing detailed information on the role and importance of trusted contacts.
At Lewitas Hyman, we have decades of experience dealing with securities fraud cases and a unique level of knowledge when it comes to protecting the rights of investors. If you think your financial professional or firm engaged in misconduct that caused you investment losses, contact us for a free evaluation of your matter. Give us a call at (888) 655 6002 or submit our online contact form to speak with a member of our legal team.
