The Financial Industry Regulatory Authority (FINRA) is introducing new rule proposals that would let financial advisers pause orders if they suspected there to be any financial exploitation of senior investors. The proposed regulation notices would assist member firms in protecting elderly clients that have diminished capacity. One of the proposals creates a 15-day “safe harbor” period where advisers can hold disbursements into senior customer accounts if they suspect that fraud is taking place. Another proposal being released would require firms to obtain the information on trusted contacts belonging to the accounts of senior investors. A “senior investor” is any person that is 65 or older, or there is any other evidence of vulnerability. There has also been growing interest in congress for some federal legislative proposals in this area.
See Megan Leonhardt, FINRA Rolling Out Rules To Prevent Elder Financial Abuse, Wealth Management, October 13, 2015.
