Finra proposed Thursday to allow brokers to halt the disbursement of money or securities for up to 15 days when they suspect the involvement of elder or disabled financial abuse.
The ability of financial professionals in the securities and banking industry to stop suspect transactions has become one of the most vocal causes of senior advocates.
A handful of states, including Missouri and Washington, already allow a wide range of workers in the financial industry to stop payouts they think resulted from the coercion or blind theft of seniors and adults with mental and physical disabilities that hinder their ability to manage their finances.
Under the Finra proposal, brokerage employee could put the transaction on hold and the firm would be required to make an immediate review.
The firm would also be required to notify the individual and a trusted contact member within two days of the hold.
However, with the prevalence of friends and family members among elder abusers, the firm could withhold notifying those who they suspect might take financial advantage of the senior or disabled individual.
With the proposed rules, the brokerage would be required to ask new account holders of any age to provide the name and contact information of someone they trust.
The brokerage would also be urged to check back with the account holder to make sure that the “trusted contact” is still trusted.