It seems like the financial media is full of articles almost on a daily basis of another investment firm being charged with investor fraud. And no matter how many warnings are issued, included many by Wealth Management Exchange, the toll continues to mount.

But recently at Wealth Management Exchange's investment conference, Wealth Forum 2009: The Rules Have Changed, Tom Robinson of the CFA Institute echoed some astute recommendations from his association.

First, said Robinson, "you should understand clearly the advisor's investment strategy. Beware of investment opportunities described in impressive, complicated terms." What's more it's important to match the investment strategy to reported performance, and ask, "Does it make sense?"

Wealth Managers Shouldn't Promise "Sure Bets"

These days, investors should watch for e-mail solicitations and Internet fraud. The internet is a low-cost way for scammers to reach millions of people. Robinson advises investors to also be wary of "sure things," quick returns, and special access. "Legitimate investment professionals do not promise sure bets and restrict access," he notes.

Many investors rarely check on what kind of regulation the investments are covered by. But it is crucial to understand what, if any, regulatory oversight exists. Fraud may be less prevalent in regulated settings, like mutual funds.

In addition, Robinson points to a CFA Institute guideline which recommends that investors evaluate the advisory firm's operational risk and infrastructure. "It is important that a firm have separate, independent operations for asset management, trading, and custody to provide checks and balances against fraud," Robinson noted at the Wealth Forum.

Now more investors are learning to ask more questions. For example, ask about independent audits and who performs them. An auditor should be independent, reputable, and congruent with the size and scope of the investment operation.

And what about the quality of the investment advisor team? Assess the personnel. Said Tom Robinson: They should be people with relevant experience, education, and training.

"Look for recognized professional credentials. Perform a background check. Check history with regulatory organizations. Be wary if you are pressured to make an investment decision before you have time to investigate." And whatever else you do, be sure to diversify your investments.