How Do You Know Your True Calling

Nov. xviii, 2009

The telephone rings as you're sitting downward to dinner or putting the kids to bed.  A stranger is selling something.  Information technology's known as "common cold calling."  For many businesses, including securities firms, common cold calling serves as a legitimate way to accomplish potential customers.  But sometimes serious trouble and financial losses await you at the other end of the line.  You may be pressured to buy a bad investment.  Or the investment might be a scam.

Whether the calls are annoying, calumniating, or downright crooked, you can stop cold callers.  This Alarm tells you how to stop cold calls, what your legal rights are, which ruddy flags to avoid, and how to evaluate any investment opportunity that comes your fashion over the telephone.

Employ the "National Exercise Non Telephone call Registry" to Reduce Unwanted Cold Calls

The National Practise Not Call Registry was jointly established by the Federal Trade Commission and the Federal Communications Commission to give Americans a manner to avoid getting telemarketing calls at home.  Adding your habitation or cell phone number to the Registry is like shooting fish in a barrel — and absolutely free.  You may register 2 ways:

1. Online at donotcall.gov, as long every bit yous have a working e-mail address.  Soon subsequently you sign up, you lot will receive an email confirmation from donotcall.gov that contains a link you must click to complete the process.  If you do non click on this link within 72 hours, your phone number volition not be registered.
2. Over the telephone by calling price-costless i-888-382-1222 from the number you wish to register.

For more information on the Exercise Not Phone call Registry, see the FTC's website.

Be enlightened that putting your home phone or cell telephone numbers on the National Do Not Call Registry will not terminate all telemarketing calls.  You nonetheless may receive calls from:

• Political organizations, charities, and telephone surveyors.
• Companies with whom yous have an established business relationship.  Under FINRA rules, an established business relationship includes making a financial transaction or having a security position, money residuum or account activity with the firm inside the past 18 months.  A securities representative may likewise phone call you for up to three months later on you've contacted the firm to inquire about a production or service.
• Companies y'all accept provided express written permission to make telephone contact.
• If the caller is a family member, friend, or associate, they also may still call you.

Understand Your Rights

When telemarketers, including people from the securities industry, call to sell you something, they must follow these of import rules:

Cold Callers Must Check the "National Do Not Call Registry" — With very few exceptions, federal constabulary requires all telemarketers, including securities firms, to search the National Do Non Call Registry every 31 days to avoid calling whatever numbers that are on the Registry.

Tip:  If your number has been on the Registry for 31 days and you receive a cold phone call from an entity that doesn't meet any of the exceptions to the cold calling rules, you can file a complaint at donotcall.gov or by calling toll-gratis 1-888-382-1222.  Y'all'll need to know the date of the call and the company's name or phone number to file a complaint.

Cold Callers May Call Y'all at Domicile Simply Between viii:00 a.m. and nine:00 p.1000. — These time restrictions for calls at home apply unless y'all have an established business human relationship with the firm or you lot gave the house limited written permission to call you at other times.  Cold callers may call you at work at any time.

Common cold Callers Must Say Who's Calling and Why — Cold callers must promptly tell y'all:

• Their name
• Their business firm's name
• Their firm'due south address or telephone number
• The purpose of the phone call — for case, to sell you an investment or investment-related services

Caller ID Tip: If yous have Caller ID activated on your phone, y'all should exist able to tell when a telemarketer is calling.  The Federal Communications Committee requires telemarketers to transmit Caller ID data.  Telemarketers may non block their numbers.

Additional Responsibilities of Cold Callers — Cold callers must too:

• Put you on their "Practise Not Call" listing, if yous ask. Every securities firm must go on a "do not call" list.  If you desire to stop sales calls from that business firm, tell the caller to put your name and phone number on the house's "do not call" list.  If anyone from that firm calls you once again, get the caller's name and telephone number, note the date and time of the call, and mutter to the business firm's compliance officeholder, the SEC, the FINRA, or your state's securities regulator.  Further below, you'll find information on how to make a complaint.

Note: Once you're on a firm-specific do-not-phone call-list, neither the business firm nor any of its employees are allowed to call you—even if there is an established business organization relationship.

• Treat you with respect. Cold callers can't threaten, intimidate, or utilise obscene or profane language.  They tin can't call you lot repeatedly to annoy, abuse, or harass y'all.


• Get your written approval before taking coin directly from your depository financial institution accounts. Before investing, you should e'er become answers to the questions below and written data about the investment.  If you do make up one's mind to buy from a common cold caller, do not give your checking or savings account numbers to the broker over the phone.  Brokers must get your written permission -- such every bit your signature on a cheque or an authorization grade -- before they can use money from your checking or savings business relationship to fund your investments.


• Tell you the truth. People selling securities must tell you lot the truth. If they don't, brokers violate federal and state securities laws.

What Are Signs of Trouble?

Common cold calling is used legitimately to detect clients for the long term.  These callers inquire questions to understand your financial state of affairs and investment goals before recommending that you buy annihilation.  Unfortunately, not everyone has your best fiscal interest at heart.  Watch for these signs of trouble:

• Loftier-pressure sales tactics. Ambitious cold callers speak from persuasive scripts that include retorts for your every objection.  Every bit long equally you stay on the phone, they'll keep trying to sell.  And they won't let you get a give-and-take in edgewise.


• Pitches that stress "one time-in-a-lifetime" opportunities. Watch out for someone who tells you almost a "once-in-a-lifetime" opportunity, specially when the caller bases the recommendation on "inside" or "confidential" information.


• Callers touting companies with "breakthrough technologies." These technologies play off of legitimate technologies, but at the same time sound just a little also skilful to exist truthful.


• Callers who refuse to send you written information about the investment.  This is a course of manipulation designed to forcefulness a quick conclusion.  You lot should be able to receive data well-nigh an investment and take equally much time as you need to review information technology.


• Calls from unregistered and unsupervised salespersons. Cold-calling "brokers" and their bosses may non exist properly registered to sell securities—and often operate in an environment completely devoid of required supervisory procedures.  Y'all can verify whether the caller is registered to sell securities by using FINRA BrokerCheck.

What Else Can You Practice?

When common cold callers utilise harassing, abusive sales tactics and lie to you most investment opportunities, they violate the cold calling rules and break federal and state securities laws.  Don't let them off the hook!

U.South. Securities and Exchange Commission
Investors may file a complaint electronically at the SEC Investor Complaint Center or call or fax:
Phone: (800) 732-0330 (toll-free)
Fax: (202) 772-9295

FINRA
Investors may file a complaint electronically at the FINRA Investor Complaint Center or call or fax:
Phone: (240) 386-HELP (4357)
Fax: (866) 397-3290

Your Country'south Securities Regulator
Investors may file a complaint electronically at the Due north American Securities Administrators Clan (NASAA) Complaint Centre or call:
Phone:     (888) 846-2722 (toll-gratuitous)

Federal Merchandise Commission
You may file an online complaint at www.donotcall.gov or telephone call:
Phone: (888) 382-1222 (price-gratuitous)

• Study abusive cold callers.  Yous can file a complaint with the SEC, FINRA, your state'southward securities regulator or the FTC:
• Tell intrusive cold callers not to telephone call over again. If you're annoyed by cold callers, stop them before they offset their sales pitch.  Put your name on the National Do Not Call Registry—and inform the cold caller your name is on the list. Tell the caller to put you on the business firm's "practise not call" listing.  If anyone from that firm calls you again, complain to the firm'due south compliance officeholder, the SEC, FINRA and your land's securities regulator.


• Don't warm up to intrusive cold callers. Cold callers oftentimes try to "warm upwardly" potential customers with flattery or friendship.  They might try to put you off guard past chatting about your hometown or the local sports team.  Or they might suggest they've spoken with you earlier.  Don't fall for their tactics.  And don't experience compelled to be polite or stay on the line.  You don't have to listen if you don't want to, and y'all don't have to tell cold callers virtually yourself or your finances.  Say "no, thank you" or "I'k not interested" -- and and so hang up.  Don't wait for the caller to terminate the call.  YOU are in control and can hang up at any time.

What If I Want to Invest?

Never buy an investment based simply on a phone sales pitch.  A wise investor will ever boring down, ask questions, go written information nearly the investment, and investigate the background of the firm and broker.  Take notes and so you have a record of what the broker told you, in example yous have a dispute afterward.  Earlier making a final decision and handing over your hard-earned money, take the time to investigate.  Follow these steps:

• Cheque out the firm and broker. Use FINRA BrokerCheck to learn about the professional background, registration/license statuses and conduct of FINRA registered firms and their registered brokers.


• Call your state's securities regulator. You'll detect contact data for your state securities regulator on NASAA's Spider web site.
  • Is the investment registered?
  
  
  • Is the banker licensed to exercise business organisation in my state?
  
  
  • Have you received any complaints about the banker pushing the investment or the broker'south house?  Does either take a disciplinary history?
  
  
  • Have you lot received whatever complaints about the stock, the visitor, or the visitor's managers?
• Ask your broker these questions:
  • Is the investment registered with the SEC and the state securities bureau where I alive?
  
  
  • How long has the company been in business organisation?  Is it making money?  If and so, how?  What is its production or service?  Accept the people who are managing this visitor ever made money for investors in the past?  Will yous ship me the latest reports that accept been filed on this company?  How can I get more information most this investment?
  
  
  • Where does the stock trade?  How can I get data about the stock's trading toll?  How easily can I sell?  What toll would I get if I determine to sell immediately?
  
  
  • How does this match my investment objectives?  What is the risk that I could lose the money I invest?
  
  
  • What are the costs to purchase, concur, and sell this investment?
• Practice your ain research. Get as much written data about the investment as you can.  Ask for a prospectus, annual written report, offering circular, and fiscal statements.  Commercial Web sites or your local library may have resource that provide additional information nearly the visitor, such every bit lawsuits, liens, or contempo credit reports.  Compare the written information to what y'all've been told over the phone.  Watch out if yous're told that no written information about the company is bachelor.  If that happens, contact the SEC, FINRA or your state'due south securities regulator immediately.


• Get a 2d opinion. Talk to a trusted financial advisor or your chaser.  Consider calling another firm for a 2nd opinion on the opportunity.


• Monitor your investment.  If you decide to invest, lookout your investment closely.  Brand sure your broker sends you account statements and written confirmation of all trades.  Read these documents advisedly to brand sure they are correct.  Be alert for whatever transactions you did not qualify.

Think, in that location are rules governing common cold calling. Information technology pays to know them — and don't hesitate to take action in the outcome the caller does not abide by them.

Boosted Resources

• National Exercise Not Telephone call Registry
• FCC Alert, National Do-Not-Call Registry

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Source: https://www.sec.gov/reportspubs/investor-publications/investorpubscoldcallhtm.html

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