Financial Security: How Firms Can Guide and Guard Clients

On a recent episode of FINRA Unscripted: Financial Security in 2026: Tips for Investors and How Firms Can Help, host Margherita Beale spoke with Gerri Walsh, President of the FINRA Investor Education Foundation and Senior Vice President of Investor Education at FINRA, about how firms can help investors build financial security.

Walsh emphasized that financial security is more than wealth, it’s about resilience, preparedness, and having the knowledge and tools to make sound decisions. For firms, that means empowering and protecting their customers at every turn, she said.

Walsh explained that investors today face multiple pressures: rising costs of living, market volatility, and the increasing threat of financial fraud. Nearly two-thirds of U.S. adults report anxiety when thinking about their finances, and a significant number worry about scams. “A successful fraud attack can wipe out years of savings and be emotionally devastating,” she said. This is where firms play a critical role, not just as service providers, but as partners in financial education and protection, she noted.

One key step firms can take is helping customers define and pursue their financial goals. Walsh noted that investors often overestimate their understanding of financial concepts, with gaps in areas as basic as inflation, risk, and compound interest. Firms can bridge that gap by providing accessible tools, clear explanations of products and strategies, and transparent communication about costs and risks. “Where it’s feasible, firms can do a great service by providing tools and information that will help their customers understand the markets,” Walsh said. She added that this guidance should be realistic, helping investors balance their appetite for risk with their capacity to absorb potential losses.

Debt management and precautionary savings are other areas where firms can support clients. Encouraging investors to build a buffer of three to six months of essential expenses, and guiding them toward healthier debt strategies, frees up cash flow for long-term financial goals. While these may seem like personal steps, firms can provide education, calculators, and planning resources to make these actions more approachable and actionable, she said.

Cybersecurity and fraud prevention have become integral to financial security. Walsh highlighted that most scams come from actors outside regulatory oversight, making vigilance essential. Firms can educate customers on strong passwords, multi-factor authentication, and the hallmarks of investment fraud. Teaching investors to spot warning signs—whether from relationship scams, imposter schemes, or social media investment clubs—can prevent losses before they happen. FINRA provides tools and resources on these topics through the Member Hub and FINRA.org, which firms can share with clients to strengthen protections.

Understanding the customer deeply is another way firms can protect their clients. Walsh explained that knowledge of a customer’s personal and financial situation can help firms spot vulnerabilities and prevent fraud. For instance, sudden changes in a client’s personal life may precede targeted scams, and awareness allows firms to respond proactively. This approach aligns with FINRA Forward, the organization’s initiative to modernize regulatory practices. Walsh described member firms as essential collaborators, providing insights from the front lines that shape educational resources and inform best practices.

Education and empowerment go hand in hand. Investors are motivated to learn, and firms that provide accessible guidance on products, costs, and strategies can help them make informed decisions while avoiding pitfalls. Walsh emphasized that putting investors first is a shared responsibility: “Firms, regulators, financial educators—we can all help contribute to the financial security of U.S. adult investors.”