The Financial Industry Regulatory Authority wants to further amend Rule 2165 (Financial Exploitation of Specified Adults) to extend the hold period and allow temporary holds on securities transactions in cases of suspected financial exploitation of seniors.
Regulatory Notice 20-34 requests comments by Dec. 4 on FINRA’s plan to extend the period for placing a temporary hold on accounts to 55 days from 25 and to create the first uniform, national standard for placing holds on transactions related to suspected financial exploitation.
As it stands now, Rule 2165 allows broker-dealers to place a temporary hold on a specified adult customer’s account for up to 25 business days if the criteria in the rule are satisfied.
The rule also provides that the 25-day period may be terminated or extended by a state agency or a court of competent jurisdiction, FINRA states.
Previous feedback FINRA received supported extending the hold period.