FYI: FINRA FAQs on Exploitation of Vulnerable Adults
Posted onFYI: FINRA has posted FAQs addressing new FINRA Rule 2165 (Financial Exploitation of Specified Adults), and amendments made to FINRA Rule 4512 (Customer Account Information), both of which become effective February 5, 2018. Among the more controversial aspects of Rule 2165 is the safe harbor it provides BD member firms to place a temporary “hold” on a disbursement of customer funds or securities from the account of a specified adult if the member reasonably believes that financial exploitation of the specified adult has occurred, is occurring, has been attempted or will be attempted. Among other things, the FAQs clarify that […]