FINRA, Stanford Team Up To Create Financial Fraud Research Center

FINRA's investor education unit is working with Stanford University to dig into the mechanics of how financial crime works and how advisors can protect their clients.


The new Research Center on the Prevention of Financial Fraud just opened up.


As yet, given its roots in Stanford's Center on Longevity, it is taking a senior-oriented approach to the subject, looking at how and why older investors fall for various come-ons and retirement schemes.


Its activities are also aimed at educating members of the law enforcement and legal communities about common scams, but the first batch of reports looks relevant to a broad audience.


One note: Nobel laureate and portfolio guru William Sharpe, a Stanford professor, is attached to the project. It will be interesting to see how his more market-facing approach interacts with the somewhat "behavioral" or psychological slant of much of the research so far.


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