COVID-19 NOTIFICATION: To protect your safety and ours in response to the threat of COVID-19, Ron Mullin and his staff are available to speak with you by phone to assist you during our normal office hours of 8:30–5:00. We are offering our clients and potential clients the option to connect with us through telephone, email, and zoom video-conferencing. Please call us to discuss your options.

Mullin Law Firm

Free 30 Minute Initial Consultation
Phone: 925-852-6014
Telephone Conferences Available via Phone and Video

Phone: 925-852-6014

Free 30 Minute Initial Consultation. Telephone Conferences Available via Phone and Video.

  1. Home
  2.  » 
  3. Uncategorized
  4.  » FINRA Rule Preventing Elder Financial Abuse

FINRA Rule Preventing Elder Financial Abuse

On Behalf of | Mar 17, 2022 | Uncategorized |

In California, as with other states, elder abuse is one of the most disturbing kinds of crimes. Elders are protected with special rules to prevent financial exploitation and other forms of abuse.

New FINRA Rule

FINRA is the Financial Industry Regulatory Authority, and they are one of the most important agencies in charge of the finance industry. They issue rules and regulations to protect consumers. One of the most important recent rules that they have issued is to protect the elderly. The elderly are common targets of financial abuse, especially by financial advisors. The new rule has provisions to protect elders from predatory advisors and brokers.

There are several different elements to the new rule. They are designed to prevent brokers and other financial agents from making themselves the beneficiary of an elderly client. Older people with dementia can be deceived into signing paperwork that makes their brokers the beneficiary of their wills. These rules expand the definition of a customer and specify cases like a broker resigning and then asking to be the beneficiary or asking one of their relatives to be the beneficiary. Since brokers and financial advisors have a lot of experience and knowledge, they can find lots of ways to exploit the elderly to get access to their estates. The new FINRA rule is designed to stop as many of these as possible.

The elderly are at high risk of cognitive decline and they have accumulated significant wealth, making them a prime target for abuse. The new FINRA rule should help put a stop to some avenues of exploitation by brokers and other agents.