State Regulators List Top Investor Threats
The North American Securities Administrators Association (NASAA), the association of state securities regulators, announced the top investor threats according to a survey of state regulators. Sales by unregistered salespeople of unregistered products tops the list of regulators’ concerns along with sales of short-term promissory notes. NASAA also warns investors to closely scrutinize oil and gas investments as well as real-estate investments (e.g. non-traded REITS, timeshare resales, and brokered mortgage notes). Ponzi schemes also continue as a top threat.
OUR TAKE: Firms should consider policies and procedures that address these issues to the extent sales personnel offer these types of products.