Senior investors are among the most frequently targeted victims of financial
exploitation. In order to better protect this group of people, the Financial
Industry Regulatory Authority (FINRA),
adopted new rules to allow brokers to take additional steps to protect senior investors
and other specific groups, the first nationally standardized protection
of its type in the nation. These rules include:
Including an Additional Person as a Point of Contact on Accounts
This new FINRA rule requires brokers to make a reasonable effort to secure
someone to fill the role of designated trusted contact person to include
on the senior investor’s brokerage account. This person will act
as a resource for the brokerage firm who can assist in responding to possible
cases of exploitation, the protection of assets, and account administration.
Placing Holds on Suspicious Activity
Placing holds when potential fraud is detected is not a new process in
the financial world, brokers now have permission to use the same responses
as most banks in these situations. This rule specifically applies to accounts
belonging to people 65 years old and above and people with physical or
mental impairments that make it difficult for them to protect their investments.
"Before this new rule, firms were really struggling with this day
to day," said Jeanette Wingler, an attorney in FINRA's Office
of the General Counsel. The new rule gives "the firms time to investigate
when a request for a disbursement raises red flags."
Firms or brokers that suspect financial exploitation may be occurring can
place a hold on disbursements from that account for up to 15 business
days, and may continue that hold for an additional 10 days if additional
information supports the initial suspicion comes up during its investigation.
The account holder and trusted contact will be notified of the hold.
If you or one of your loved ones was the victim of financial exploitation,
our investment fraud lawyers at Meyer Wilson are ready to hear your story.
Over the past 19 years, we have successfully recovered more than $350
million in verdicts and settlements for our clients.
Send us your information through our online form to set up a free case consultation, or give us a call at one of our office
locations to talk one of our attorneys over the phone today.