“Recognizing that something might be wrong can only happen when there is a relationship between the broker and the client," Bleier said. "Asking a client for a trusted contact can lead to a deeper conversation between the client and the advisor,”
Some firms, such as Edward Jones, have already begun asking clients for a trusted contact.
“We have an alternate contact authorization form that we ask clients to complete,” said John Ellis, principal in the Edward Jones compliance department. “The alternate does not have any control over the account and there is a limited amount the advisor can tell the contact, but we can tell them enough to get them involved.”
The process has already been used in about a quarter of the company's branches. “We are working with the industry, regulators and lawmakers to come up with new tools to protect clients,” Ellis said.
“These are two really good rules, but even more needs to be done,” said Paul Tramontozzi, an advisor at KBK Wealth Management in New York City. “Sometimes the trusted contact is the source of the problem. More interaction needs to be allowed between financial institutions.”
The Finra rules are a good starting point, he noted, adding that protecting elderly clients from financial abuse is "the future of wealth management.”