New financial act for military Published Dec. 7, 2006 By Securities Division of the NC Department of the Secretary of State POPE AIR FORCE BASE, N.C. -- President George W. Bush signed the Military Personnel Financial Services Protection Act into law (Public Law 109-290) Sept. 26. This new law is designed to help protect military personnel from dishonest or predatory financial services providers. It requires these providers to publicly disclose information about their firms and their employees if they wish to do business on the premises of any military installation. Airmen will be able to access this information online or by calling a toll-free number before deciding which firm and/or representative will handle their brokerage and investment advisory business. The new law also bans the sale of high-priced, contractual mutual funds. The new law requires the Department of Defense to maintain a list of individuals who have been banned from selling financial services products on military bases. DOD will share that list with Federal and State securities and insurance regulators. This will help track rogue agents who go from base to base to try to sell unscrupulous financial products. Airmen are advised that the Securities Division of the North Carolina Department of the Secretary of State is responsible for enforcing the state's securities laws. The division is a resource for Airmen or their dependents to call to find out if a broker or investment adviser or investment adviser representative is properly registered, and whether any complaints or actions have been filed against the individual or firm. Military personnel are also encouraged to be on the lookout for non-traditional investment opportunities offering higher than average rates of return. Investment programs such as these are often promulgated through social groups such as churches or clubs. They often involve seminars in which only selected individuals are allowed to enter and they maintain a degree of secrecy about them. Most of these types of programs are fraudulent in nature and often lead to serious investor losses. Also, not every promoter of an investment is registered with the Securities Division. If the promoter is not registered, this should be a "red flag" that the investment might be fraudulent. Airmen are asked to remember the old saying: "If the investment sounds too good to be true, it is!" Airmen are encouraged to call the Securities Division at 1-800-688-4507, or visit our Web site at www.sosnc.com, if they have any questions about their financial services provider, or if they feel they have been victimized by a dishonest broker or adviser.