SCC encourages Virginians to beware of cross-selling when investing

Virginia SCCIt is not uncommon for representatives of banks and investment firms to recommend financial products and services such as investment products to their clients. By cross-selling, financial professionals encourage investors to purchase securities related to their original investment. In some cases, these representatives may try to capitalize on a pre-existing positive relationship with a client to induce them to increase their investments or invest in a new product.

When done properly, this marketing technique can be lucrative for the firms and their representatives and can sometimes make sense for the client. While the practice is legal, it can backfire for consumers, particularly if a representative tries to push a product outside of their scope of knowledge or an unregistered securities product.

Ron Thomas, director of the State Corporation Commission’s Division of Securities and Retail Franchising, urges Virginians to take appropriate precautions whenever they invest. “In some cases, cross-selling may be mutually beneficial to financial firms and their clients. It allows these firms to inform clients about the range of financial products and services available,” he said. “At its worst, this common sales technique can mislead clients into acting against their best interests.”

Whenever investing, Thomas cautions Virginians to beware of unsolicited investment offers, aggressive sales tactics and promises of high returns with little or no risk. He encourages investors to protect their financial interests by asking questions and getting details about any investment offer in writing. Find out how the investment will generate returns, the time frame for payout, any associated costs and how your financial professional will be compensated. “Make sure an investment and the person offering it are registered and the investment suits your particular needs,” Thomas said.

To learn more, contact the SCC Division of Securities and Retail Franchising at 804-371-9051 or toll-free in Virginia at 1-800-552-7945. You may also visit the division’s website at www.scc.virginia.gov/srf/index.aspx or the North American Securities Administrators Association’s website at  http://www.nasaa.org/47635/informed-investor-advisory-cross-selling/.

uva basketball team of destiny
Team of Destiny: Inside Virginia Basketball’s Run to the 2019 National Championship, by Jerry Ratcliffe and Chris Graham, is now available at a special pre-sale discounted price of $20. The book is expected to ship by June 10, 2019, and will retail for $25.
Pre-order for $20: click here.


The book, with additional reporting by Zach Pereles, Scott Ratcliffe and Scott German, will take you from the aftermath of the stunning first-round loss to UMBC in 2018, and how coach Tony Bennett and his team used that loss as the source of strength, through to the ACC regular-season championship, the run to the Final Four, and the thrilling overtime win over Texas Tech to win the 2019 national title, the first in school history.
 
augusta free press

Related Content

Shop Google


Comments

%d bloggers like this: