Depending on which “side of the isle” you normally sit, it appears there are some who prefer the flexibility to conduct their personal and professional lives in the manner of their choosing while others are comfortable being told what, when, where, why and how. Regulation generally adds time and expense and seldom does it gain support from both sides of that isle. But that is a discussion for another time.
Effective February 5, 2018 FINRA Rule 2165 (Financial Exploitation of Specified Adults), recently approved for adoption by the Securities and Exchange Commission (SEC)) and amendments to FINRA Rule 4512 (Customer Account Information) seeks to help prevent the financial exploitation of senior citizens and other specified adults. According to Regulatory Notice 17-11, members will be able to place temporary holds on disbursements from accounts of “specified customers” when there is a reasonable belief of financial exploitation. The amendments to FINRA Rule 4512 require members to make reasonable efforts to obtain the name and contact information for a “trusted contact person” should the client be unreachable.
No matter which side of the isle you find yourself, it seems hard to imagine finding fault with protecting those who often need it the most.
To view the full notice, please click here.
About Red Oak Compliance Solutions
Red Oak Compliance Solutions is a leading provider of intelligent compliance software, offering a range of AI-powered solutions designed to help firms of all sizes successfully navigate the increasingly complex regulatory landscape. Our suite of 17(a)-4/WORM compliant features offer risk minimization, cost reduction, and process optimization capabilities with features that are designed to evolve with our client’s needs. Our flagship advertising review software enables firms to deliver compliant content to the market with confidence, faster. Our Disclosure Management and Intelligence solution simplifies the management of disclosures, while our Registration Management solution automates and streamlines the licensing and registration process, further enhancing your internal processes.