Sadly, the financial exploitation of senior citizens is a growing problem in the United States. As a result of the growing problem, the SEC has approved new rules relating to the financial exploitation of seniors (Rule 2165 and amendments to Rule 4512). The new rules provide members of the Financial Industry Regulatory Authority (FINRA) with a way to respond to situations in which they have a reasonable basis to believe that financial exploitation has occurred, is occurring, has been attempted or will be attempted. A FINRA member is any broker or dealer admitted to membership in the Financial Industry Regulator Authority.
The amendment to Rule 4512 requires FINRA members to make reasonable efforts to obtain the contact information for a trusted person when opening a customer’s account or when updating account information of an existing account. The purpose of the trusted contact person is to be a resource to the FINRA member.
