Financial Exploitation of Seniors

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[…]

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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