Home > Compliance > Finra warns of scammers posing as regulators

Finra warns of scammers posing as regulators

Regulatory Compliance


Finra issued a recent alert warning investors that scammers are posing as Finra representatives to pitch fraudulent investments with guaranteed returns, reports Financial Planning. The fraudulent pitches have come in the form of emails and official-looking letters, even including a fake signature from Finra CEO Robert Cook, according to reports. See the full story below. Also, be cautious when including an award, designation or industry ranking in advertising materials for your RIA, advises industry legal expert Thomas D. Giachetti in a column in Investment Advisor magazine. Even when an award is granted by a third party, it “carries the obligation of internal analysis and the development of detailed and prominently displayed disclosures,” Giachetti writes. The SEC could deem an advertisement as false or misleading if it would lead a client or prospect to infer something untrue about the RIA or its clients’ experiences, he notes. See a link to his column below.


Con artists pose as FINRA to scam clients

By Sean Allocca

Source: Financial Planning

What’s the latest hoax scammers are using to trip up potential victims? They’re posing as FINRA’s CEO. The regulator issued an alert recently, warning clients about con artists who pose as FINRA representatives to pitch fraudulent investment opportunities with guaranteed returns. A recent scam even involved a fake signature from FINRA CEO Robert Cook.



Won an Award? Brag With Caution

By Thomas D. Giachetti

Source: Investment Advisor magazine

It has become increasingly common for RIAs to receive awards, designations or rankings by third-party publications. RIAs often view the receipt of such awards, designations or rankings (collectively referred to as “awards”) as validation of a job well done.