FINRA Looks to Firms to Curb Elder Abuse
From the Desk of Jim Eccleston at Eccleston Law LLC:
As the population continues to age, FINRA has proposed new regulations that would expand wealth management firms' responsibilities as well as their scope of action with regard to the financial abuse of the elderly.
A proposal was submitted to the SEC by FINRA which would require firms to make “reasonable” efforts to get the contact information for a client’s so-called trusted person. A client’s trusted person is someone that the firm could contact if they suspect abuse. The proposed regulations would also allow FINRA to place a temporary hold on the disbursement of funds when it suspects abuse.
FINRA believes the proposed changes are important because currently firms are not required to contact someone who is not the account holder. The proposed regulations will not go into effect until they are approved by the SEC.
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Related Attorneys: James J. Eccleston
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