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Just Got A Really, Really Scary E-Mail From Penfed

Bozo
  |     |   1,375 posts since 2011

It purports to be from PenFed, but I'm wary. It claims to want to hook you up with their financial advisors, but the telephone numbers don't match. Could it be a phish? Be careful out there.

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Bozo
  |     |   1,375 posts since 2011
Ken, it purports to be from PenFed Wealth Management, but something just seems odd. Just thought I'd give a heads-up to the folks.

As they say, "if in doubt, scrub it out".
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Stewie
  |     |   87 posts since 2010
Or, as Yogi Berra once said, "Never answer an anonymous letter."
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Ally6770
  |     |   4,307 posts since 2010
In credit unions I have never seen a broker or investment person be an employee of the credit union. The financial people are employees of a bank or at least this is the way that it used to be. I would only use a BIG firm if I were investing where I would have strength behind the investment and not a person who could go rogue. I want oversight and lots of it. I have always been risk adverse.
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de7ye
  |     |   73 posts since 2010
The financial salespeople are always employees of a subsidiary or affiliate of the credit union.
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Ally6770
  |     |   4,307 posts since 2010
Federal credit unions have limited powers and are not authorized under the Federal Credit Union Act (the Act) to sell nondeposit investments directly to their members. Further, federal credit unions cannot register as broker-dealers because the SEC requirements, including capital and reserve requirements, are inconsistent with those NCUA and state supervisory authorities place on federal credit unions. Federal credit unions, therefore, must structure their securities activities carefully to strictly meet the terms of SEC guidance applicable to federal credit unions contained in a “no action” letter. See, eg., Chubb Securities Corp., 1993 SEC No-Act. LEXIS 1204 (Nov. 24, 1993) (Chubb Letter).
The most common way for federal credit unions to offer nondeposit investment products to their members is by employing third party brokerage arrangements.4 Federal credit unions involved in third party brokerage arrangements must have a written agreement clearly outlining the duties and responsibilities of each party in the arrangement. Generally, there are three permissible ways to structure a third party brokerage arrangement. First, a credit union may wholly or partly own a credit union service organization (CUSO) that sells nondeposit investment products, primarily to credit union members. 2 and 3 link below. 
This was revised in 2010 after I retired.
https://www.ncua.gov/Resources/Documents/LFCU2010-03.pdf
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Sylvia
  |     |   389 posts since 2012
The advisor referenced in my email is indeed from CUSO. While living elsewhere, he’s licensed in a number of states, including mine. The phone numbers not matching is probably due to location of agent assigned to your territory.
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