Sunday, September 20, 2015

FINRA approves proposal to protect seniors from financial exploitation

The Financial Industry Regulatory Authority (FINRA), Wall Street's industry-funded watchdog, said on Thursday its board of governors approved a proposal to protect seniors and other vulnerable adults from financial exploitation.

Firms will be allowed to put on hold disbursement of funds or securities and alert a customer's trusted contact when they suspect manipulation, according to the proposal.

The proposal would amend FINRA's customer account information rule so that the name and contact information for a trusted contact person is obtained upon opening an account.

The proposal would also apply to investors 18 and older if they have mental or physical impairments that render them unable to protect their own interests and there is a reasonable belief of financial exploitation, FINRA said.

Full Article & Source:
FINRA approves proposal to protect seniors from financial exploitation


tvfields said...

Didn't the Ohio Supreme Court strike down such a rule as being unconstitutional in its 2012 decision LeBlanc v. Wells Fargo, 134 Ohio St.3d 250, 2012-Ohio-5458? (Read this decision at does this rule compare to the Seniors Savings Protection Act which Missouri's governor just signed into law? Will the courts strike down Missouri's law? Will the courts strike down FINRA's proposal? Is Missouri's law, or FINRA's proposal, strict enough that it can be counted upon to prevent abuse? If not, could the law and proposal be amended so as to be made more reliable? Can we count upon lawmakers to make the law reliable?

Finny said...

I appreciate FINRA speaking out about financial exploitation but what about Banks who exploit as guardian of the estate?