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Investor Alerts

Financial Advice via Social Media Investor Alert

Social media has become more saturated with financial content than ever before, leading to the rise of the financial influencer or “finfluencer.” Viral videos proclaiming that this or that investment opportunity will “go to the moon this year!” have proliferated, as have social media postings promoting easy plans for paying off your house, car, or student loan debt using language such as “5 easy tricks to financial freedom.” This investor advisory explains what financial influencers are, how they are compensated, what you should keep in mind when you are exposed to financial influencers’ content, red flags to watch out for, and resources available to you.
Adobe PDF Document Financial Advice via Social Media Investor Alert

Metaverse Investor Alert

The metaverse is the latest technology that for some people offers new ways to interact and collaborate, while others see it as new means to perpetrate financial scams and investment fraud. This alert highlights some current metaverse investment scams and discusses ways that investors can protect themselves.
Adobe PDF Document Metaverse Investor Alert

Romance Scams Investor Alert

Dating apps and social media platforms may be good ways to meet new people but be cautious if someone turns a burgeoning online romance into an opportunity to solicit an investment or ask to borrow money. Scammers are increasingly posing as potential romantic partners to lure people into fraudulent investment schemes. This alert discusses some common tactics fraudsters use in investment-related romance scams and points out things you can do to protect yourself from these schemes.
Adobe PDF Document Romance Scams Investor Alert

Reassigned Investment Accounts Investor Alert

If your stockbroker or investment adviser leaves his or her employer, you should make sure that you understand how and why it happened. It could be as simple as a move to another city or retirement, but there could be other reasons too. It is critical to find out what happened before deciding who will help you with your investments going forward. After all, it’s your money and your future that is at stake.
Adobe PDF Document Reassigned Investment Accounts Investor Alert

Decentralized Finance (DeFi) Investor Alert

Decentralized finance, or DeFi, is a relatively new blockchain-based set of financial services gaining popularity and acceptance. This alert discusses DeFi, the technology behind it, and how you can protect yourself from falling victim to a scam.
Adobe PDF Document DeFi Investor Alert

h2>Expense Ratios Investor Advisory

Mutual funds and exchange traded funds (ETFs) offer investors a cost-efficient way to invest in professionally managed portfolios of securities. While it is often tempting to make a purchase based on a fund’s historical performance, informed investors know that past performance is no guarantee of future performance, and that they must review a fund’s prospectus, shareholder reports, and portfolio holdings to see if the fund’s risk/return profile aligns with theirs. An informed investor will pay particular attention to a fund’s expense ratio, which, over time, can eat into a fund’s earnings significantly.
Adobe PDF Document Expense Ratios Investor Advisory

Social Media and Online Trading Investing Advisory

In our digitally connected world, some investors turn to online chatrooms and social media platforms for information about investing or specific investment opportunities. Phone apps can turn even the most casual investor into a day trader, and online investment chat forums make it easy to use these sources for investment advice rather than using the services of a registered investment adviser. While ever-evolving technology makes investing more accessible to greater numbers of people, the informed investor knows that technological democratization also brings significant risk.
Adobe PDF Document Social Media and Online Trading Investing Advisory

ESG Investing Advisory

As climate change and social concerns have grown in recent years, many investors are becoming more conscious of whether a company in which they are investing has considered environmental, social, and governance (ESG) factors. This is resulting in an investor-driven push to get corporate managers to pay greater attention to ESG issues. Some corporations are responding by altering their management philosophies and business plans.
Adobe PDF Document ESG Investing Advisory

Protecting Online Accounts Advisory

As financial technology has evolved, it has given consumers the ability to shop, save, and invest online using their phones, tablets, and computers. These modern financial conveniences, however, come with risk. Scammers are always looking for new ways to get into a consumer’s wallet, electronically or otherwise. Investors should be cautious in the way they use the conveniences offered by new and evolving financial technology, especially as they’ve become more widely used during the COVID-19 pandemic. A bit of caution can keep virtual distance between scammers and investors’ money. This advisory provides an overview of some of the most common threats to online accounts and discusses steps investors can take to better protect themselves and their financial information.
Adobe PDF Document Protecting Online Accounts Advisory

Opioid Addiction Advisory

DFI offers two new resources to help raise awareness of how the opioid crisis impacts investment professionals and their clients. The first is a guide to help investment professionals understand the many ways opioid use disorder might affect their clients, how to spot signs of financial exploitation, and how to help clients affected by opioid abuse. The second resource is a checklist of questions financial professionals can use to help start a conversation with clients about the financial ramifications of opioid addiction.
Adobe PDF Document Opioid Addiction Brochure

Adobe PDF Document Opioid Addiction Conversation Starters

Cross-Selling Advisory

Cross-selling by banks and investment firms is a growing concern for securities regulators. At its best, this is a way for banks or investment firms to inform clients about the range of financial products and services available. At its worst, this common sales technique can take advantage of loyal clients.
Adobe PDF Document Cross Selling Advisory

Robo Adviser Advisory

If Wisconsin investors are considering a robo-adviser, they should be sure to examine all available information to make sure they understand the risks and benefits provided by this type of advice.
Adobe PDF Document Robo Adviser Advisory

Crypto Coin Advisories

Not every ICO or cryptocurrency-related investment is fraudulent, but investors should approach any initial coin offering or cryptocurrency-related investment product with extreme caution.
Adobe PDF Document Cryptocurrency Advisory

Adobe PDF Document ICO Advisory

Binary Options Investor Advisory

Investors should be cautious about schemes related to binary options amid the proliferation of online platforms and a growing number of related investor complaints.
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Private Placement Offerings Advisory

A private placement is a securities offering that is not required by law to be registered with federal or state securities regulators. Private placements allow companies to sell stocks, bonds, or other securities to investors without completing the rigorous disclosures necessary in a registered offering. Private offerings made under Rule 506 are not reviewed by regulators and, as a result, there is an increased potential for fraud. This advisory provides an overview of private placement offerings, the risks associated with these offerings, and the steps investors can take to minimize their risk of falling victim to fraudulent private placement offerings.
Adobe PDF Document Click here for the full Advisory