FINRA Proposes New Regulations To Address Financial Abuse Of Seniors

The Financial Industry Regulatory Authority (FINRA) has proposed new rules to combat the financial exploitation of senior citizens.  These new regulation proposals would permit a broker to place a hold on the disbursement of funds from a senior citizen’s account if they suspect something is going on.  Under the proposed changes a new category of “specified adults” will be created to apply to any person that is over the age of 65, or over the age of 18 that the broker reasonably believes has a mental or physical impairment that makes them unable to protect their own interests.  This column discusses how the broker would be able to place a hold on that persons account and make disclosures to a trusted contact person. 

See Lloyd Harmetz and Claire Logan, FINRA Proposes Rules to Help Avoid Financial Exploitation of Seniors, The BD/IA Regulator, October 27, 2015.