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March 30, 2017 at 10:49 AM
Beginning next year, seniors and their investments will be protected by two new rules aimed at curbing financial abuse.
Starting in February 2018, firms will have to “make reasonable efforts” to get the name and associated information for a “trusted contact person for a customer’s account” and will be allowed to put temporary holds on the release of funds or securities “when there is reasonable belief of financial exploitation,” according to the Financial Industry Regulatory Authority.
“These rules will provide firms with tools to respond more quickly and effectively to protect seniors from financial exploitation,” said FINRA President and CEO Robert W. Cook, in a statement. “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.”
By getting a contact person for an investor, a firm could then have an additional resource for handling the senior’s accounts, protecting the account assets and responding to any possible financial exploitation.
