Financial Exploitation Archives

Changes to FINRA Rule 2165: Financial Exploitation of Specified Adults

Posted on April 1, 2022 by admin

FINRA has adopted amendments to Rule 2165 (Financial Exploitation of Specified Adults) to permit member firms to: (1) place a hold on a securities transaction (in addition to the already-permitted hold on a disbursement of funds or securities) where there is a reasonable belief of financial exploitation; and (2) extend a temporary hold on a disbursement or transaction for an additional 30 business days, beyond the current maximum of 25 business days (for a total of 55 business days), if the member firm has reported the matter to a state regulator or agency, or a court of competent jurisdiction. The Read more about Changes to FINRA Rule 2165: Financial Exploitation of Specified Adults[…]

The Senior Safe Act: “Immunity” with Conditions

Posted on July 22, 2019September 13, 2019 by SCM Communications

On May 23, 2019, the SEC, NASAA, and FINRA published a year-end review of the Senior Safe Act which became federal law one year ago. In doing so, they also issued a Fact Sheet to help raise awareness with financial institutions and describe how the Act’s immunity provisions work.

Financial Exploitation of Seniors

Posted on November 9, 2017July 22, 2019 by SCM Communications

FINRA has announced new rules relating to the financial exploitation of seniors and other specified adults. On February 5, 2018, the amendments to Rule 4512 and new Rule 2165 become effective. FINRA Rule 4512 FINRA Rule 4512 will require members to make reasonable efforts to collect the name and contact information of a trusted contact person upon the opening of a non-institutional customer account or when updating the account information in existence prior to the effective date. During the account opening or while routinely updating the information, members must disclose to customers in writing that the trusted contact person may Read more about Financial Exploitation of Seniors[…]

Financial Exploitation of Specified Adults

Posted on October 27, 2016July 22, 2019 by SCM Communications

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.