Reach, Educate, Protect. The FINRA Investor Education Foundation

Transcription

1 Reach, Educate, Protect The FINRA Investor Education Foundation

2 Who We Are The FINRA Investor Education Foundation provides underserved Americans with the knowledge, skills and tools necessary for financial success throughout life. FINRA, the Financial Industry Regulatory Authority, is dedicated to investor protection and market integrity through effective and efficient regulation of the securities industry. FINRA established the Foundation in 2004 to support research and innovation leading to improved financial capability in the United States. Our goal is to reach more and more Americans each year, educate them on their own terms, and protect them in a world that is complex and dynamic. ii FINRA Investor Education Foundation Reach, Educate, Protect

3 Table of Contents The FINRA Investor Education Foundation: and Beyond... 2 Reach, Educate, Protect... 5 Grant Programs... 7 Foundation-Directed Projects...15 Financial Snapshot Board, Officers, Staff...24 FINRA Investor Education Foundation Reach, Educate, Protect 1

4 The FINRA Investor Education Foundation: and Beyond During the past decade, the FINRA Investor Education Foundation has been a leader in supporting important research and financial education initiatives leading to tangible benefits for individuals and families in all parts of the country. Richard G. Ketchum Chairman, FINRA Investor Education Foundation We ve benchmarked Americans financial knowledge and skills, helped investors avoid financial fraud and ensured that millions of young people are prepared for adult financial decisions. Military members and their families have relied on the Foundation s resources to manage the many transitions and challenges that come with a life dedicated to service. And hardworking Americans everywhere have taken steps to achieve financial stability and wellness as a result of programs and services made possible by the Foundation s grants. We haven t done this alone. We work closely with our dedicated grantees and project partners people and organizations committed to building bridges between communities and the resources and financial education they need and want. These partnerships are at the very heart of what the Foundation does. They fuel innovation and transform good ideas into everyday experiences. 2 FINRA Investor Education Foundation Reach, Educate, Protect

5 By collaborating with others, we also maximize the value of every dollar spent. The result: More and more Americans are realizing that their financial goals are within reach and are becoming better savers and investors. As we look ahead, we plan to strengthen the Foundation s partnerships through training, research and program delivery. Working with like-minded organizations, we will continue to address the nation s financial capability needs. The FINRA Foundation is proud of the decade of accomplishments detailed in this report. But more importantly, we re excited by what the future holds. When it comes to helping Americans improve their financial lives, like smart investors, we re in it for the long haul. Richard G. Ketchum Chairman Gerri Walsh President Gerri Walsh President, FINRA Investor Education Foundation FINRA Investor Education Foundation Reach, Educate, Protect 3

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7 Reach, Educate, Protect These are the FINRA Investor Education Foundation s guiding principles and have been for the last decade. They steer our many partnerships, our grants and our programs. Reach To widen access to the education and information necessary for financial success, the Foundation s grants, projects and training efforts leverage partnerships with membership and other types of organizations. We also use new and conventional media and employ a range of distribution channels to help diverse audiences get reliable information from reliable sources. Our goal is to reach more and more Americans each year, educate them on their own terms, and protect them in a world that is complex and dynamic. Recognizing that high-quality financial education resources already exist, the Foundation and its partners focus on making sure these resources reach those who need them the most. Sometimes it s via the Internet; other times it can be through a counselor; and still other times it can be through a reference specialist at the local public library. Educate Effective financial and investor education addresses an individual s needs and values throughout the lifecycle. Foundation-supported education projects serve both young people who have not yet entered the workforce full time, as well as adults in mid-career, nearing retirement or in retirement. The tools and information used in these programs are carefully tailored to the culture, language and experiences of specific audiences. 10 Years of Building Financial Capability December 2003 FINRA* announces its intention to create and sustain a foundation dedicated to helping investors better understand and navigate financial markets. October 2004 The FINRA Investor Education Foundation begins operations, awarding 11 grants totaling nearly $1.2 million. September 2005 A federal court orders that $55 million in fines collected as part of the Global Research Analyst Settlement be remitted to the Foundation and distributed within a ten-year timeframe. February 2006 The Foundation launches the multi-faceted Military Financial Readiness Project and SaveAndInvest.org. * In July 2007, NASD and NYSE Member Regulation merged to form FINRA. Throughout this timeline, NASD is referred to as FINRA for ease of understanding. FINRA Investor Education Foundation Reach, Educate, Protect 5

8 May 2006 The Foundation, AFCPE and the National Military Family Association select the first 200 recipients of the FINRA Foundation Military Spouse Fellowship to increase the pool of Accredited Financial Counselors serving military families. July 2006 Foundation-funded research announced at an SEC Senior Summit shatters the stereotypes of investment fraud victims, revealing that victims are often financially knowledgeable men. May 2007 The Tuck School of Business at Dartmouth partners with the FINRA Foundation to convene a social marketing symposium for financial educators. All of the projects supported by the Foundation recognize that people learn in different ways. Some people, for example, prefer a social setting, while others like the convenience of online education. Some are visual learners or respond best to learning-by-doing. So we ve funded efforts that rely on different modes of instruction. Research and rigorous evaluation help us ensure that resources flow to the most effective strategies and programs. Protect Risk is ever-present and comes in different forms, but it s poorly understood even by well-informed investors. Some risks involve the danger of fraud, and investors must recognize they could be at risk and need defenses to protect themselves from unscrupulous behavior. In other instances, investors struggle to achieve the right balance of return and loss potential in their portfolios, at times assuming too much or too little risk as a result of misinformation or misjudgments that impede wise decisions. Either way, their long-term financial well-being is threatened. The Foundation s grants and programs involve research to improve our understanding of investor risk-taking and susceptibility to fraud. But research is only half the equation: We also work with leading economists and cognitive scientists to distill highly complex information into practical tools that protect investors from poor decisions and inappropriate influence tactics. December 2007 The Foundation and the American Library Association award the first $850,000 in Smart investing@your library grants to public libraries. 6 FINRA Investor Education Foundation Reach, Educate, Protect

9 Grant Programs The Foundation funds research and educational projects that support our mission of providing underserved Americans with the knowledge, skills and tools necessary for financial success throughout life. Our grants allow researchers to explore financial behavior and develop practical ways to help investors avoid costly mistakes and prepare for the future. Grant funding also ensures that reliable financial education is available to all who need it, when they need it. In 10 years, the Foundation s grant programs have provided $37.5 million in funding for 246 research and education initiatives. Some of our grantees include leading researchers who distill complex information into practical guidance for those who lack experience in the financial and investing world. Other grantees are advocates who make sure investors, especially those with modest means, know their rights and responsibilities. All of our grantees are educators. For them, life is full of teachable moments at the workplace, on the Internet, in our professional associations, and everywhere learning can be productive and relevant. January 2008 President George W. Bush appoints FINRA Foundation Chairman Mary Schapiro to the inaugural President s Advisory Council on Financial Literacy. April 2008 The Foundation launches the Investor Protection Campaign to help investors spot and avoid investment fraud. May 2008 The Foundation joins the North American Securities Administrators Association to co-host a symposium on social marketing strategies for investor education led by Dartmouth s Tuck School of Business. December 2008 After five years of operations, the Foundation s cumulative grantmaking reaches $17.6 million. January 2009 With the Consumer Federation of America and Channel One News, the Foundation launches Generation Money to teach students how to be money savvy and financially fit. FINRA Investor Education Foundation Reach, Educate, Protect 7

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11 General Grants Through the General Grant Program, the Foundation supports innovative research and educational efforts of national scope and significance. Over the years, priorities have included improving disclosure to investors, meeting the financial education needs of women and youth, and explicating the relationships among financial literacy, financial capability and financial well-being. Snapshot of General Grants: InvestNative: First Nations Development Institute With grant support from the Foundation, First Nations Development Institute launched the InvestNative Project to help Native American communities especially youth learn investing basics and make productive financial decisions. More information is available at Research: Learning Point Associates A National Evaluation of The Stock Market Game With a grant from the Foundation, Learning Point Associates (now the American Institutes for Research) conducted a rigorous, randomized controlled trial of the Securities Industry and Financial Markets Association (SIFMA) Foundation s Stock Market Game. Researchers found that students who played the game scored significantly higher on mathematics and financial literacy tests than their peers who did not play the game. This study has led to a better understanding of the effectiveness of this widely used financial literacy program. Learn more at Love Your Money: University of Tennessee The University of Tennessee and a coalition of other state universities developed Love Your Money with grant support from the FINRA Foundation. The project provides financial education to college students through a combination of online coursework and face-to-face instruction. Through students can learn how to manage money and save and invest wisely. The website also includes step-by-step plans covering topics like building wealth, budgets, setting goals, credit cards, debt, 401(k) programs, identity theft and more. October 2009 The Foundation approves $1 million in grants to provide start-up funding and assistance to law schools that establish Investor Advocacy Clinics in high-need areas. December 2009 The Foundation issues findings from the inaugural National Financial Capability Study at an event with the U.S. Secretary of the Treasury and U.S. Secretary of Education. March 2010 The Foundation and United Way Worldwide announce the first $1.5 million in Financial Education in Your Community grants supporting grassroots financial education projects designed to meet the needs of hard-to-reach, underserved adults. June 2010 The Foundation and the Tuck School of Business at Dartmouth host a third symposium on using social media and social marketing to improve financial education. FINRA Investor Education Foundation Reach, Educate, Protect 9

12 September 2010 American Public Television and WQED Pittsburgh begin distribution of the Foundation s documentary Trick$ of the Trade: Outsmarting Investment Fraud to public television stations nationwide. October 2010 President Barack Obama appoints FINRA Foundation Chairman Rick Ketchum to the President s Advisory Council on Financial Capability. December 2010 Kiplinger s Personal Finance names the Foundation s Trick$ of the Trade documentary in its list of Best of Everything March 2011 The Foundation makes no-cost, ad-free FICO credit scores available to active-duty military service members and their spouses. Research: Florida State University The Development of Superior Personal Investing Performance Through a study that identifies investment-related activities associated with high versus low household wealth accumulation, Florida State researchers tackled the question, What are those households that accumulate wealth doing that is different from households that accumulate little wealth? The results, now published in a peer-reviewed academic journal, reveal key differences in financial behaviors between households with low and high financial outcomes at retirement. Project principal David Eccles and his team worked with the Florida State University instructional design staff to create educational materials based on the research findings. Are You Financially Fit? explains the research and six simple personal finance strategies undertaken regularly by top-performing households. You can find the study at RetirementWealth and the educational materials at PDF/FinanciallyFit. Gen i Revolution: Council for Economic Education The Council for Economic Education, with support from the Foundation, developed an online simulation game to complement Learning, Earning, and Investing for a New Generation, a financial literacy curriculum for middle and high school students. The game consists of fifteen interactive missions in which students complete a variety of activities to help them learn important personal finance concepts. Learn more at July 2011 The Institute for College Access and Success publishes a Foundationfunded report on how colleges can help students and families make better decisions about private student loans. 10 FINRA Investor Education Foundation Reach, Educate, Protect

13 Smart library Smart library, a grant program jointly administered with the American Library Association and its Reference and User Services Association, supports public and community college libraries in their efforts to provide effective financial education resources to library patrons. August 2011 The Foundation and the Stanford University Center on Longevity launch the Financial Fraud Research Center. Smart investing@your library has grown to $8.4 million in grants involving libraries nationwide. Through the program, library patrons are empowered to make smart financial decisions, both for long-term investing and day-to-day money matters. The program is especially concerned with reaching those who might otherwise have limited access to important information relevant to their financial wellbeing. More information is available at October 2011 The Foundation participates in First Lady Michelle Obama and Dr. Jill Biden s Joining Forces Initiative, pledging to expand elements of the Foundation s Military Financial Readiness Project. April 2012 A FINRA Foundation study finds women pay about half a percentage point more in credit card interest rates than men, regardless of financial literacy level and after accounting for demographic differences. November 2012 Smart investing@your library Financial Education in Your Community Investor Advocacy Clinic Denotes statewide or regional initiatives Working with the National White Collar Crime Center, the Foundation launches Targeting Investment Fraud, a professional development course for law enforcement and investigators. FINRA Investor Education Foundation Reach, Educate, Protect 11

14 May 2013 Findings from the 2012 National Financial Capability Study are released at an event at George Washington University with the Chair of the Securities and Exchange Commission and the Director of the Consumer Financial Protection Bureau. September 2013 New Foundation research gauges exposure and response to traditional and Internet-based scams, and the relationships between susceptibility to fraud and various demographics. October 2013 The Foundation and the National Center for Victims of Crime publish Taking Action: An Advocate s Guide to Assisting Victims of Financial Fraud. Financial Education in Your Community Financial Education in Your Community, a grant program administered jointly by United Way Worldwide and the Foundation, supports community-based financial education programs across the country. In addition to funding, grantees receive training, technical assistance and peer support to increase their capacity to provide accurate, unbiased financial education for hard-toreach working adults. Financial Education in Your Community has supported 56 projects through nearly $7 million in funding. Grantees demonstrate new approaches to improving financial outcomes for low- to moderateincome families. By applying the best practices of adult learning and social marketing to grassroots financial education efforts, program grantees have created new models of financial education. Rigorous attention to evaluation reveals that many of the program participants achieve financial practice and behavior change and improve their financial circumstances. More information is available at December 2013 Findings from the Foundation s 2012 Military Financial Capability Survey are released at an event with the Department of Defense, the Consumer Financial Protection Bureau and others. 12 FINRA Investor Education Foundation Reach, Educate, Protect

15 Investor Advocacy Clinic Program Since 2009, the Foundation s Investor Advocacy Clinic Program has provided start-up funding and assistance to law schools that establish clinics to help low- and moderate-income investors who have a dispute with a securities professional. Investors often fare better if they are represented by an attorney with experience in securities arbitration. Arbitration is the most widely used means of resolving disputes in the securities industry. In most cases, attorneys represent parties on both sides of a dispute. However, investors with relatively modest claims often cannot find an attorney to represent them on a contingency basis, and often cannot afford the hourly rate for representation. The Foundation has awarded $2 million in Investor Advocacy Clinic Grants to eight law schools to establish clinics offering legal advice and other help for underserved investors. This program helps fill the gap in legal representation for small investors. The clinics enable supervised law students to provide legal assistance and other advice to investors at little or no cost. In addition to start-up funding, the Foundation provides resources and technical assistance to grantees throughout the grant term. Visit for more details. February 2014 President Barack Obama appoints Foundation Chairman Rick Ketchum to a new President s Advisory Council on Financial Capability for Young Americans. June 2014 The Foundation research brief The Financial Capability of Young Adults A Generational View gains national media attention, including a feature story in Kiplinger s Personal Finance magazine. June 2014 The Foundation s cumulative grantmaking reaches $37.5 million, of which $8.4 million has been directed to 113 Smart investing@your library grants and $6.9 million to 56 Financial Education in Your Community projects. August 2014 The Foundation distributes its 1 millionth copy of Money & Mobility, a publication with the National Endowment for Financial Education and National Military Family Association to help military families financially prepare for moves or deployments. FINRA Investor Education Foundation Reach, Educate, Protect 13

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17 Foundation-Directed Projects Grantmaking is only one part of the Foundation s work. We also conduct our own research and undertake programs directly to fill important gaps and meet the needs of underserved audiences. For instance, through our Military Financial Readiness Project, we bring unbiased financial education to U.S. service members around the world, working closely with the Department of Defense and many nonprofit organizations that provide financial guidance to military families. As part of our Investor Protection Campaign, we collaborate with dedicated partners to help Americans detect fraud and learn how to step away when confronted by powerful persuasion tactics commonly used to commit fraudulent schemes. And we work with law enforcement and victim advocates to ensure those who have been harmed are connected with the appropriate resources to assist in their financial and emotional recovery. The Foundation gives special emphasis to bridging research and practice to help Americans achieve their financial goals throughout life. The Foundation supports and manages a consortium of stakeholders to undertake the National Financial Capability Study, which provides detailed and comprehensive data to document the financial resilience, knowledge and skills of the American public. The study benchmarks where we are as a nation, and puts a spotlight on where and how we need to improve. The Foundation also provides training and development to professionals who work with victims of investment and financial fraud, as well as librarians and others who want to assist their communities financial literacy efforts. And we support a multi-faceted initiative aimed at helping young people become financially savvy. Snapshot: Financial Fraud Research Center Stanford University s Center on Longevity and the FINRA Investor Education Foundation joined together to launch the Financial Fraud Research Center, an interdisciplinary resource for law enforcement, government and research groups studying financial fraud. Financial fraud swindles Americans out of billions of dollars each year. The Center supports and consolidates scientific research and connects this research to practical prevention and detection efforts. More information about the Center and an extensive archive of research and resources related to financial fraud are available at FINRA Investor Education Foundation Reach, Educate, Protect 15

18 Snapshot: FINRA Foundation Military Spouse Fellowship The FINRA Foundation Military Spouse Fellowship gives military spouses the opportunity to obtain a career-enhancing credential the Accredited Financial Counselor (AFC) certificate. Fellows, in turn, provide financial counseling and education to other members of the military community. Created in 2006, this program is administered in partnership with the Association for Financial Counseling and Planning Education (AFCPE) and the National Military Family Association. The program has produced 452 AFCs, with hundreds more still pursuing their certifications. Spouse Fellows have collectively logged more than 400,000 hours assisting over 150,000 service members and their families. Military Financial Readiness Project Financial preparedness is a key component of military readiness. Whether on-base or deployed overseas, it s crucial that military service members have access to financial information that enables them to make prudent saving and investing decisions for themselves and their families. The Foundation s Military Financial Readiness Project delivers free, unbiased financial education tools and training to service members, their families and on-base financial educators through a variety of programs and public awareness initiatives. Through its collaboration with the U.S. Department of Defense, the Foundation helps military families manage their money with confidence. In eight years, we have educated more than 35,000 members of the military community at face-to-face forums on installations worldwide and at sea, equipped thousands of military financial educators with tools and training, and provided unbiased resources to military service members and their families. Launched in February 2006 using fine money levied against investment firms for misleading sales practices targeting military personnel, this multi-faceted program includes: a comprehensive website; training to support the military s Personal Financial Management program; fellowships that allow military spouses to earn the Accredited Financial Counselor certificate while providing financial counseling to the military community; free access to FICO credit scores and educational tools for eligible active duty service members and their spouses; and face-to-face financial education forums at military installations worldwide to motivate families to achieve financial well-being. For more information on the Foundation s military outreach, visit 16 FINRA Investor Education Foundation Reach, Educate, Protect

19 Investor Protection Campaign The Investor Protection Campaign began in 2008 with a vision to reduce the incidence of investment fraud. Guided by a growing body of research exploring why and how investors fall prey to investment fraud, we have employed national, state and grassroots partnerships to develop and distribute fraudprevention resources and conduct outreach to investors. Through the campaign, the Foundation is: 00 building the capacity of our partners to effectively deliver tools and resources to help investors spot and avoid the red flags of investment fraud, while assisting those who may have already fallen victim; 00 harnessing the reach of mobile, online and television outlets to market and distribute new resources; and 00 facilitating research and new strategic partnerships that strengthen the infrastructure of the fraud-fighting community. The campaign initially developed in partnership with AARP, state officials and noted experts in social influence employs traditional and non-traditional awareness strategies and tools, an online community at and a research-based Outsmarting Investment Fraud training program that helps investors identify and resist persuasion tactics. Partnerships enable us to reach investors around the nation with consistent messages and tools to help them better protect their finances from fraud, and to assist victims in reporting fraud and getting help. Snapshot: Trick$ of the Trade Developed by the Foundation in partnership with AARP, Trick$ of the Trade: Outsmarting Investment Fraud is an hour-long documentary on preventing investment fraud. Featured on PBS and recognized by Kiplinger s Best of Everything, it features compelling stories of victims and perpetrators and uncovers the persuasion tactics that con artists use to defraud their victims. It also explains the basic tools investors can use to defend against fraud. Learn more at www. SaveAndInvest.org/TricksoftheTrade. Partnerships serve as a key mechanism for distributing important fraudprevention messages. Our partners include the U.S. Securities and Exchange Commission, state securities regulators, the Stanford University Center on Longevity, law enforcement and crime prevention organizations such as the National Crime Prevention Council and the National White Collar Crime Center and a range of nonprofit organizations, from national and community-level AARP and Better Business Bureau affiliates to the National Center for Victims of Crime. Learn more at FINRA Investor Education Foundation Reach, Educate, Protect 17

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21 Generation Money Snapshot: Money Math for Teens Launched in 2008 with the Consumer Federation of America and Channel One News, Generation Money teaches middle and high school students nationwide how to be money savvy and financially fit. Exploring concepts such as compound interest, budgeting, credit, debt and investing, this award-winning campaign incorporates several components, including: 00 broadcast news features; 00 a PSA campaign; 00 student profiles; 00 classroom discussion guides and lesson plans on money math; 00 on-demand video; and 00 Web-based learning resources for students, parents and teachers. Generation Money has reached 5 million middle and high school students each year since Students participating in the campaign show more productive attributes and knowledge related to personal finance compared to non-participating students. Participating students are twice as likely to initiate discussions with family members about money and more likely to budget or track expenses. They also view themselves as much more knowledgeable about a range of personal finance topics, including paying for college and saving and investing, and are more likely to appreciate that being smart about money can help a person achieve goals in life. Learn more at Mathematics proficiency is an essential component of financial capability. For this reason, Generation Money has prepared more than a dozen standardsbased lesson plans with assessments to help middle and high school students explore the math behind personal finance concepts such as compound interest, opportunity costs and the true cost of owning a car, to name just a few. All of the lessons are challenging and presented in a way that s practical and relevant for teens. The Money Math lessons are available at FinancialBasics/Teens. FINRA Investor Education Foundation Reach, Educate, Protect 19

22 Snapshot: National Crime Prevention Council (NCPC) In 2013, the Foundation began partnering with NCPC to train crime prevention outreach partners in our Outsmarting Investment Fraud curriculum including representatives from state crime prevention associations in a dozen states, as well as members of NCPC s national network of trainers. These trainees have gone on to conduct outreach to members of the public in their communities. We re also releasing co-branded public service announcements featuring McGruff the Crime Dog advising consumers to learn to spot the red flags of fraud. Critical Choices about Student Borrowing For Americans of all socio-economic backgrounds, student loans have become a primary way to pay for higher education. The Foundation asked The Project on Student Debt, an initiative of The Institute for College Access and Success (TICAS), to determine what colleges and universities can do to ensure that students and their families understand and avoid high-risk forms of borrowing and in particular private student loans. TICAS research report Critical Choices, based on interviews with financial aid administrators in a diverse sample of 22 colleges around the country, identifies institutional policies and practices, discusses those that operate to the benefit of the students, points out those that miss the opportunity to provide helpful guidance, and recommends improvements to the financial aid process to benefit students even more. Learn more at Capacity-Building Staff Training Programs The Foundation provides training and development to professionals with a range of backgrounds. Working with partners, we train law enforcement personnel and victim advocates on how best to help individuals who have been victimized by investment or other financial fraud. We also help librarians and community service providers hone their expertise related to financial literacy and to acquire the social marketing skills to engage and assist individuals and families experiencing financial challenges. 20 FINRA Investor Education Foundation Reach, Educate, Protect

23 National Financial Capability Study The financial landscape in the United States is ever-changing, both in terms of the greater responsibility placed on consumers to manage their finances and the dynamic complexity and variety of tools and financial products available in the marketplace. Snapshot: Financial Capability Insights Managing finances is difficult and requires a combination of skills, judgment and resources. Individuals and families must grapple with a bewildering variety of financial decisions, ranging from choosing a bank and managing debt to planning for retirement and purchasing insurance. Even the simplest of these decisions requires at least some basic financial knowledge and competency, while the more complicated decisions challenge even the experts. In consultation with the U.S. Department of the Treasury and President Bush s Advisory Council on Financial Literacy, the Foundation commissioned the first national study of the financial capability of Americans in The study examined two important and distinct populations Americans over the age of 18 and military service members. The overarching research objectives of the National Financial Capability Study were to benchmark key indicators of financial capability and evaluate how these indicators vary with underlying demographic, behavioral, attitudinal and financial literacy characteristics. A follow-up study in 2012 similarly developed in consultation with the U.S. Department of the Treasury, other federal agencies and President Obama s Advisory Council on Financial Capability updated key measures from the 2009 Study and deepened exploration of topics that are highly relevant today (for example, student loans and medical debt). The Foundation is planning the next wave of the Study in 2015 to further examine how financial capability has changed over a six-year period and to explore emerging trends. Based on the wealth of data from the National Financial Capability Study, the FINRA Foundation maintains an active research agenda to help decision-makers at all levels understand the financial circumstances and needs of Americans. Findings are published in the Foundation s Insights series and are available at www. FINRAFoundation.org/Resources/ Research. Findings from the National Financial Capability Study are available at which features an interactive map of the United States and allows the public, policymakers and researchers to delve into and compare the financial capabilities of Americans in each state, the nation as a whole and the military. FINRA Investor Education Foundation Reach, Educate, Protect 21

24 Financial Snapshot The Foundation has operated using a combination of FINRA-Contributed Funds, FINRA-Contributed Services 1 and Global Research Analyst Settlement Funds. 2 Source In this period, we spent more than $80 million on initiatives that reach, educate and protect Americans in communities across the country. Global Research Analyst Settlement Funds $55 million $52 million FINRA-Contributed Funds $23 million 1 FINRA contributes services at no cost to the Foundation in the form of management oversight, program staff and certain administrative services including communications, legal, financial, tax and treasury. FINRA-Contributed Services 2 In 2005, the U.S. District Court for the Southern District of New York issued an Order providing for the distribution of investor education funds from the Global Research Analyst Settlement to the FINRA Foundation. The FINRA Foundation administers these funds according to the provisions of this Order. 22 FINRA Investor Education Foundation Reach, Educate, Protect

25 Strategy Practical Application of Research 21% Research 10% 69% Education Focus Financial Fraud Awareness and Prevention 25% Measuring Financial Capability 7% 68% Delivering and Expanding Capacity for Financial Education FINRA Investor Education Foundation Reach, Educate, Protect 23

26 Board Richard G. Ketchum, Foundation Chairman Chairman and Chief Executive Officer, FINRA Washington, DC Jayne W. Barnard Cutler Professor of Law and Kelly Professor of Teaching Excellence, The College of William & Mary Williamsburg, VA LTC John T. Dooley, USA, Ret. San Diego, CA Idalia P. Fernandez Director, Community Wealth Partners Washington, DC Sharon P. Smith President, University of Pittsburgh at Greensburg Greensburg, PA G. Donald Steel President & CEO, Planned Investment Company, Inc. Indianapolis, IN Officers Geraldine M. (Gerri) Walsh President Eileen M. Famiglietti Treasurer Jennifer Piorko Mitchell Secretary Staff Susan K. Arthur Investor Protection Campaign Robert C. Ganem Grant Programs Generation Money Christine N. Kieffer Investor Protection Campaign Military Financial Readiness Project National Financial Capability Study Gary R. Mottola National Financial Capability Study Foundation Research Susan M. Sarver Grant Programs Generation Money W.G. (Bud) Schneeweis Military Financial Readiness Project Note: No Global Research Analyst Settlement Funds were used to produce this report. 24 FINRA Investor Education Foundation Reach, Educate, Protect

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28 FINRA Investor Education Foundation 1735 K Street, NW 2014 FINRA Investor Education Washington, DC Foundation. All rights reserved. 14_ /14