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Francisco Faraco Answers the Most Frequently Asked Questions About SROs Like FINRA

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An SRO or self-regulatory organization  may be affiliated with an organization or government, but it’s a standalone body that protects stakeholders by regulating a certain industry or profession. For instance, FINRA (Financial Industry Regulatory Authority), a financial SRO, has gone as far as to set up FINRA BrokerCheck  to keep professionals in check. In today’s article, Francisco Jose Faraco  answers the most frequently asked questions about SROs. Does the Government Regulate SROs? Although SROs are self-regulating bodies, they are subject to government scrutiny and regulation. You see, SROs are an extension of government regulation. They can exercise the same power level because they represent the government to a certain extent. Therefore, the government will regulate how SROs regulate an industry or profession. Not only that, but it’ll also demand a policy change should things change on a political level. To What Extent Can an SRO Exercise Its Authority? SROs don’t always bring th
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Francisco Faraco's Perspective on Avoiding Broker Imposter Schemes via FINRA BrokerCheck

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  Although impersonation scams are not new, they are becoming more sophisticated with each passing day. In February 2021, the Financial Industry Regulatory Authority (FINRA) reported an increase in cyber-related incidents  involving fake websites that use the personal information of real industry professionals. In response to the increasing number of impersonation scams, the FBI and the Securities and Exchange Commission  warned investors about this issue. FINRA Brokercheck Francisco Faraco , CFA Charterholder and Teaching Assistant in Financial Mathematics at the University of Chicago for the Master of Science, believes these schemes can be hard to spot unless you have the necessary knowledge. Here are a few tips to help identify the fakes. Website By creating fake websites, these fraudsters imitate the operations of real investment professionals, collecting the personal information of potential customers over the phone. Aside from the usual mistakes, such as poor grammar, investors s
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