Wednesday, January 17, 2018

FINRA FAQ for Elder Financial Exploitation

FINRA has released FAQs specifically to address elder financial exploitation. Frequently Asked Questions Regarding FINRA Rules Relating to Financial Exploitation of Seniors  explains the new rules that take effect on February 5, 2018.  "[T]he SEC approved: (1) the adoption of new FINRA Rule 2165 (Financial Exploitation of Specified Adults) to permit members to place temporary holds on disbursements of funds or securities from the accounts of specified customers where there is a reasonable belief of financial exploitation of these customers; and (2) amendments to FINRA Rule 4512 (Customer Account Information) to require members to make reasonable efforts to obtain the name of and contact information for a trusted contact person (“trusted contact”) for a customer’s account."(citations omitted) FAQs 1 and 2 deal with temporary holds, 3 with trusted contacts, and 4 with disclosures.  The FAQ are available here.

https://lawprofessors.typepad.com/elder_law/2018/01/finra-faq-for-elder-financial-exploitation-.html

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