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New rules from FINRA designed to protect elderly people

| Oct 1, 2020 | FINRA |

Pennsylvanians who trust financial firms with their money and investments rely on the Financial Industry Regulatory Authority (FINRA) to protect them from possible misdeeds committed by the companies and people who work there. Although many are aboveboard with their behavior and have their clients’ best interests in mind, there are times when people are taken advantage of and find their accounts ravaged by illegal and unethical activities. Having legal assistance to address these issues as they arise is imperative.

FINRA moves forward with new rules to shield seniors

Among the most vulnerable members of society are elderly people. Scams and attempts to take advantage of seniors are unfortunately common and FINRA is trusted to keep a close watch on potential gaps that unscrupulous companies and employees may seek to exploit. Recently, FINRA pushed ahead with rules to help seniors with acts frequently used to take advantage of them.

Proposals to help seniors avoid being exploited are advancing. With exploitation, there will be an extension of the “hold” period if fraud is believed to be taking place and it was reported to the authorities. In addition, there will be a temporary hold if a securities transaction was made and there is a believe that fraud is occurring.

People who were subjected to financial wrongdoing should have legal help

These advancements by FINRA are welcome, but will not stop all fraudulent behaviors that impact seniors and others who trust financial service providers. In a best-case scenario, financial advisers will adhere to their stated objective and protect clients without thinking of their own interests. Unfortunately, firms and individuals still try and take advantage of people for their own gain. This can happen with a pyramid scheme, a Ponzi scheme, insider trading, manipulation or outright theft. While this can happen to anyone, seniors are especially vulnerable.

Using FINRA and the rights people are accorded to seek justice can be helpful to hold unscrupulous financial professionals accountable. These new rules are designed to help seniors, but sometimes that is not enough. Those who believe there was illegal activity that harmed their finances should consult with a law firm experienced with FINRA.