New Rule Lets U.S. Brokers Intervene If They Suspect Scams, Dementia

Ted

FYI: The U.S. Financial Industry Regulatory Authority announced a new rule on Thursday that allows brokers to pause disbursements from client accounts if they suspect a client is suffering from dementia or being influenced by caregivers or scam artists.

The rule, which will go into effect in February 2018, will also require brokerages to collect the name and phone number of a "trusted contact person," which the brokerage will call if a withdrawal raises such concerns.
Regards,
Ted
http://www.reuters.com/article/us-finra-regulation-elderly-idUSKBN1712YT

VintageFreak

Hmmm...okay. Disbursement means not delivering the proceeds right? I hope we are not saying brokers can simply wait a few days and sell shares at a price conveniently higher and deliver proceeds with a price inconveniently lower to the recipient, all under the guise of "suspecting" fraud.

What if a sell order received by broker and even if well meaning, he does not redeem the shares, and then next day market tanks?

A better question - How the heck do you "suspect" person you are talking to over the phone is suffering from dementia???

Old_Joe

"How the heck do you "suspect" person you are talking to over the phone is suffering from dementia??? "

Much the same way you might suspect that someone you are responding to on MFO might be suffering from dementia.

Mark

How many people 'call' a broker these days? Can't remember the last time I did.