The SEC requested comments on a FINRA proposal, originally published on October 19, 2016, that would amend certain rules in order to enable broker-dealers to prevent the financial exploitation of senior citizens and other vulnerable adults.
The proposed rule changes involve 1) amending 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 for a customer's account; and 2) adopting 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 reasonable belief of financial exploitation of these customers. The request for comments was published in the Federal Register.
Comments on the FINRA proposal must be submitted by November 28, 2016.
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