SEC Approves Rules Relating to Financial Exploitation of Senior Investors (Rule 2165 and Rule 4512)

FINRA has recently announced the SEC approval of new Rule 2165 and amendments to FINRA Rule 4512 to address a longstanding problem within the securities industry: the financial exploitation of senior investors. “These rules will provide firms with tools to respond more quickly and effectively to protect seniors from financial exploitation. This project included input and support from both investor groups and industry representatives and it demonstrates a shared commitment to an important, common goal – protecting senior investors,” said Robert W. Cook, FINRA President and CEO.  Read More…

Financial Exploitation of Specified Adults

FINRA recently filed proposed new regulations regarding broker-dealer compliance with the SEC to: (1) amend FINRA Rule 4512 (Customer Account Information) to require member firms to make reasonable efforts to obtain the name of and contact information for a trusted contact person for a customer’s account; and (2) adopt new FINRA Rule 2165 (Financial Exploitation of Specified Adults) to permit FINRA registered broker-dealers to place temporary holds on disbursements of funds or securities from the accounts of specified customers where there is a reasonable belief of financial exploitation of these customers.

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SEC Impersonators

On June 27, 2016, the Securities Exchange Commission (SEC) has issued an alert for investors to be careful with any communications seemingly sent from the SEC. Government impersonators are targeting victims of previous frauds.

These impersonators are sending official-looking documents to investors, often claiming that they can help the investor recover their investment-related losses. But, of course, the investor must pay a fee first. Usually, this fee is disguised as some sort of tax, deposit, or refundable insurance bond that the investor must pay. Read More…