A new rule designed to prevent financial abuse of the elderly requires additional information.
FINRA, a self-regulatory agency for brokers, has just implemented a new rule to help stop the financial abuse of the elderly even before it begins, according to Consumer Reports in “New Ways to Prevent Elder Financial Abuse.”
Financial abuse often goes undetected until it is too late to do anything about it. Some abuse is never caught at all. However, under the new FINRA program, brokers are required to ask all of their customers for the contact information of a trusted person whom the broker can contact if financial abuse is suspected. If a broker suspects a client is being exploited, then a hold can be put on the account for 15 days. It can also be extended for another 10 days, if necessary.
If you suspect abuse, contact law enforcement or an elder law attorney.
Reference: Consumer Reports (Feb. 2, 2018) “New Ways to Prevent Elder Financial Abuse.”