FINRA Seeks Comments About Senior Fraud Protection Rules

Aug 27, 2019 / Amanda Chase, Horsesmouth Assistant Editor

FINRA is conducting a retrospective review to assess the effectiveness and efficiency of its rules and administrative processes that help protect senior investors from financial exploitation. The protection of senior investors is a top priority for FINRA. As such, they are interested in whether additional tools, guidance or changes to FINRA rules or administrative processes are appropriate.

Recent evidence suggests that financial exploitation of seniors has been increasing, in terms of both magnitude and impact. Although studies indicate that financial exploitation of seniors is often perpetrated by strangers, family members and caregivers—rather than by broker-dealers or other financial services organizations—broker-dealers and other financial services organizations have an important role to play in protecting senior investors. FINRA has prioritized protecting senior investors and addressed financial exploitation of senior investors in numerous ways, including Rules 2165, 3240, 4512 and 4530. More specifically:

  • launching the dedicated FINRA Securities Helpline for Seniors® (Helpline)
  • permitting firms to place temporary holds on disbursements when they have a reasonable belief of financial exploitation
  • requiring firms to request information from customers about a trusted contact
  • issuing alerts and articles educating investors about important issues and highlighting risks facing senior investors

FINRA has detailed 20 questions it would like comments on. If you want more information, or have anything to say about how they protect seniors from fraud, read the full regulatory notice here.


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