Regulator Tackles Elder Fraud Issue
According to the Financial Industry Regulatory Authority (FINRA), a new regulation will take effect on Feb. 5, 2018. The rule requires that brokers make a reasonable effort to identify a trusted person who can be contacted if the broker is concerned that the client is suffering from diminished mental capacity or is the target of a scam.
The request for a trusted contact must be made at account openings for new clients and during account updates with existing clients.
The rule also allows brokers to put a temporary hold on a requested account withdrawal if financial exploitation is suspected.
Both changes were approved last year in an effort to tackle the growing issue of elder fraud. A year-over-year increase in the number of cases and complaints involving senior financial fraud and exploitation was reported last year by 29 percent of state securities regulators, according to the North American Securities Administrators Association.
According to 2015 estimates from retirement-planning site True Link, older Americans lose roughly $36.5 billion to fraud each year.
This information is all publicly available and is provided to you by The White Law Group. The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm.
If you suspect that you or someone you know has been the victim of elder fraud The White Law Group may be able to help you. For a free consultation with a securities attorney please call 1-888-637-5510. The firm represents investors throughout the country and has physical offices in Chicago, Illinois and Vero Beach, Florida. Or visit our website at https://www.whitesecuritieslaw.com.