Products November 12, 2007

FINRA Targets Baby Boomers in Investor Outreach Campaign

The Financial Industry Regulatory Authority (FINRA) has launched a broad-based advertising campaign aimed designed to drive Baby Boomer investors to the financial tools and educational resources available on the organization’s Web site.
Reported by

FINRA said it has found that Baby Boomers lack confidence in their investing knowledge and are eager to better understand their investment options. Further, recent FINRA Investor Education Foundation-sponsored research showed that seniors are targeted more frequently by investment fraudsters than younger investors.

The advertising campaign, which includes television, radio, print and online advertisements, aims to make investors comfortable with seeking in-depth information about retirement savings strategies, how the markets work, and how to check out the professional backgrounds of brokers and securities firms.

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“FINRA-sponsored research has consistently shown that the vast majority of investors acknowledge that they need to increase their investing knowledge and have a strong interest in education and information that’s unbiased,’ said FINRA CEO Mary Schapiro, in a press release. “Large majorities also report being anxious about losing money on their investments, saving for retirement and becoming victims of investment fraud – underscoring the growing need for thorough, accessible, user-friendly investor tools and educational resources.

At the organization’s Web site, www.finra.org, FINRA offers extensive information and multiple tools to help investors save, invest and manage their money. According to FINRA, one of the most popular is BrokerCheck, a tool that allows investors to search a database to learn a broker’s background – including licenses and registrations held, customer complaints and past disciplinary actions.

Other online tools include learning centers focusing on retirement accounts, 529 College Savings Plans, and bond investing, as well as calculators that assist with investing in various securities products.

Deals & People November 12, 2007

BenefitStreet’s Founder and CEO Departs

Jim Drury, the founder, Chairman, and CEO of BenefitStreet, has left the firm.
Reported by

Although BenefitStreet’s spokesman acknowledged that Drury had left the company, no reason was given for his departure. However, sources told PLANADVISER that he had been dismissed.

Alex Hehmeyer, board member since 2004, currently serving as general counsel for BenefitStreet as a consultant, has been named as interim CEO and Chairman. BenefitStreet has retained an executive recruiting firm to conduct a national search for a permanent CEO.

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The firm says that Hehmeyer assumes his role at a time when the firm “is focusing on growth opportunities’ following the introduction of various products.

Earlier this year, BenefitStreet announced it would offer Barclays Global Investors’ iShares exchange-traded funds (ETFs) via a new 401(k) platform (See BenefitStreet Offers Barclays’ iShares on New 401(k) Platform). BenefitStreet’s spokesman said that the relationship there is “business as usual.’ A spokeswoman for BGI said that iShares is “very committed” to ETFs in the 401(k) space and therefore will continue to work with BenefitStreet but will also be pursuing other relationships in this space as well.

Reliance Trust Company was added as a custodian to the 401(k) product in September (See Reliance Signs on as Custodian for BenefitStreet ETF 401(k) Platform) and then the platform was broadened, enabling investors to choose both exchange traded funds (ETFs) and mutual funds in the same plan (See BenefitStreet Expands 401(k) Platform to Include Mutual Funds).

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