SEC Staff Reviews Approach for Protecting Senior Investors
SEC Office of Investor Advocate ("OIA") staff provided guidance for financial firms and professionals on ways to protect senior investors from financial exploitation.
The OIA advised financial firms and professionals to combat financial exploitation by, among other things:
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creating policies to specifically address seniors;
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providing training for employees to recognize and react to senior financial exploitation appropriately;
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providing training as to relevant laws and regulations, including FINRA Rule 2165 (Financial Exploitation of Specified Adults), FINRA Rule 4512 (Customer Account Information), NASAA Model Act to Protect Vulnerable Adults from Financial Exploitation, state laws patterned on the Model Act, and the Senior Safe Act (for the full text of the law, see Section 303 of the Economic Growth, Regulatory Relief, and Consumer Protection Act); and
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responding to signs of potential abuse by pausing payments, notifying a client's trusted contacts or notifying governmental authorities.