Wiley Series 6 Securities Licensing Exam Review 2019 + Test Bank by Wiley

Author:Wiley [Finra]
Language: eng
Format: epub
ISBN: 9781119552741
Publisher: Wiley
Published: 2018-11-13T00:00:00+00:00

ANALYSIS

This is a serious red flag, and in this situation the agent has a significant conflict. On the one hand, the agent is required to do as the client requests. On the other, the agent feels a duty to protect the client and senses that their client may be the victim of senior exploitation. Even discussing the matter with a principal of the firm is not enough to determine if the client is being taken advantage of.

FINRA’s rules allow broker dealers to withhold distributions to senior clients for 15 business days in cases of suspected financial exploitation. During this time the broker dealer should investigate the client’s request and obtain as much information regarding the receiving party as they can.

To further protect seniors, broker dealers should obtain the name and contact information of a “trusted contact” for senior clients. The firm in very limited circumstances may contact the trusted contact to inquire about requests to withdraw money when financial exploitation is suspected. The firm may also contact the person to inquire as to the welfare of the client and to inquire as to the identity of any individual who may hold power of attorney or who may be named as executor of the client’s will. If the firm at the end of 15 business days has gathered information relating to the request that indicates that this is a case of financial exploitation, the firm may withhold the funds for another 10 business days. The firm should share their findings with the center for elder abuse as well as with law enforcement.

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