FINRA Teams with IFEBP to Warn Consumers about Early Retirement Scams |
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Written by U. S. Insurance News
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Monday, 14 July 2008 |
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Scammers, beware.
The Financial Industry Regulatory Authority (FINRA) and the
International Foundation of Employee Benefit Plans (IFEBP) have formed
a partnership to distribute two online resources to help companies and
their workers protect themselves from early retirement scams.
The resource for companies, “Help Your Employees Achieve Their Retirement Dream: Tips for Spotting Early Retirement Scams,” explains how to evaluate both the financial professionals who present early retirement seminars and the seminar materials themselves. In addition, company representatives may refer early retirement seminar materials to FINRA for review if they have concerns. After reviewing the submitted materials, FINRA will inform the company whether the materials are consistent with applicable standards.
The resource for employees, “Early Retirement Seminars 101: Smart Tips for Spotting Retirement Scams,” warns workers about early retirement schemes.
“We believe this program helps employee benefits professionals prepare their employees for a financially stable retirement,” said Michael Wilson, CEO of IFEBP. “Partnering with FINRA is a logical step as we work toward fulfilling our vision to ensure the future security of the American worker and retiree.”
These online resources are part of an investor education initiative conducted in the wake of two major FINRA enforcement actions that involved multi-million-dollar fines and millions of dollars in restitution to employees. Additional investigations are underway.
“After helping employees lay the groundwork for financial independence in retirement through company-sponsored plans, companies don’t want to unwittingly help scammers lure their employees into an early—and financially perilous—retirement,” explained Mary L. Schapiro, FINRA CEO. “While many third-party seminars offer solid information, others, especially those that promote early retirement, may include misleading, even fraudulent promises of big financial returns and the dream of a comfortable, but ultimately unsustainable, retirement lifestyle.”
Both FINRA and IFEBP are making the resources available on their respective Web sites.
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