A new regulation from the Financial Industry Regulatory Authority (FINRA) went into effect earlier this month, as reported by Investment News. It requires that brokers attempt to find a trusted contact person if they fear a client is suffering from mental incapacity or is the victim of a scam. This regulation is meant to target elder abuse. A trusted contact person should be listed at the time an account is opened or during account updates with existing clients.
The FINRA rule protects brokers from liability if they stop disbursements from a client’s account. The hold can last an initial 15 days and then be extended another 10. More