Articles Tagged with FINRA Rule 2165

FINRA Rule 2165 Allows Members to Put Holds on Client Accounts

March 31, 2018 | Silver Law Group

In another attempt to help older investors get the protection they need, the Financial Industry Regulatory Authority (FINRA) recently established Rule 2165 (Financial Exploitation of Specified Adults). This regulation allows member financial professionals to place holds on accounts in the event that exploitation is suspected.

How Rule 2165 works

Rule 2165 concerns “specified adults,” which are defined by FINRA as people 65 and older or someone 18 or older who a “member reasonably believes has a mental or physical impairment that renders the individual unable to protect his or her own interests.”

FINRA and SEC Adopt New Rule to Help Curb Elder Financial Fraud

June 6, 2017 | Silver Law Group

FINRA and the SEC adopted and approved a new rule that is intended to help curb elder financial fraud.

In March 2017, FINRA adopted FINRA Rule 2165. Financial Exploitation of Specified Adults. Shortly thereafter, the SEC approved the rule with an effective date of February 2018 set in place.

FINRA Rule 2165 allows a FINRA member firm that reasonably believes financial exploitation may be occurring or has occurred to place a temporary hold of up to fifteen (15) business days on the disbursement of funds or securities from the account of a “Specified Adult” customer. A Specified Adult is either (a) a person aged 65 or older; or (b) a person, aged 18 or older, who the firm reasonably believes has a mental or physical impairment that renders the individual unable to protect his or her own interest.