FINRA Proposes Rules To Help Avoid Financial Exploitation Of Seniors

Avoiding financial exploitation of older investors has been on our regulators' radar screens for several years. With new rules proposed in October 2015, FINRA seeks to make investing safer for seniors and other vulnerable adults.

The proposed new rules would permit (but not require) a broker to place a temporary hold on a disbursement of funds or securities from customer accounts. They would also require brokers to obtain for each non-institutional account holder the name of a "trusted contact person," so that the trusted contract person could be reached if a hold is imposed.

The proposed rules may be found at the following link: http://www.finra.org/sites/default/files/notice_doc_file_ref/Regulatory-Notice-15-37.pdf