Brokerage firms, regulators and legislators continue to work to prevent the financial exploitation of seniors and other vulnerable clients. Those close to such clients, such as family and friends, are being enlisted to play an important part in this fight.

A “trusted contact person” is someone that a client authorizes a brokerage firm to contact if the firm believes the client is being financially exploited, or under certain other limited circumstances. The Financial Industry Regulatory Authority Inc.’s Rule 4512(a)(1)(F) requires firms to make “reasonable efforts to obtain the name of and contact information for a trusted contact person” upon the opening of a customer’s account and to update this information where appropriate.

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