The financial exploitation of senior investors and vulnerable adults is a growing problem. Brokerage firms are facing increased scrutiny over their effort to protect at-risk investors from those who prey on the weak. Baby boomers are targeted daily with more sophisticated scams. Because of the number of potential victims and the dollars involved (boomers are the most invested generation in the history of the markets), a near perfect storm looms for compliance personnel. And regulators, legislators and investors’ attorneys already have taken notice.
At the same time, the industry is grappling with the safekeeping of private client information. Whether it is hackers seeking to exploit system vulnerabilities, regulators looking into companies’ efforts to safeguard their clients’ personal information or the general public’s outrage at what it views as breaches of trust, privacy issues are in the news on a daily basis.
Efforts to protect against senior financial exploitation and the safekeeping of client data have a natural intersection. Specifically, how does a firm report suspected financial exploitation or take other steps to protect at risk investors while still complying with the laws and regulations governing disclosure of such information?
This article was originally published on the Corporate Compliance Insights website. Click here to read the full article.
Publication
Corporate Compliance Insights
08.20.2019