Articles Tagged with FINRA Rule 4512

FINRA Rule 4512 Has New Amendments

March 31, 2018 | Silver Law Group

Professionals in the securities industry are obligated to follow the rules created by the Financial Industry Regulatory Authority (FINRA), and it is important that they stay abreast of any changes or updates to them. One regulation that was recently amended is Rule 4512, which concerns customer account information.

Previously, for each account opened, a FINRA member had to get and maintain certain information, including the name and address of the customer and the names of anyone else associated with the account, plus the scope of their responsibilities. Now, members also need to make an effort to get the information of a trusted contact of the client, to assist in discovering or preventing possible financial exploitation.

What constitutes a trusted contact?

FINRA Adopts Amendment to Rule That Would Provide Trusted Contact for Seniors with Diminished Capacities

June 6, 2017 | Silver Law Group

FINRA recently amended a rule that would require brokerage firms to establish a contact for at-risk seniors.

In March 2017, FINRA amended FINRA Rule 4512 to require member firms to make reasonable efforts to obtain the name and contact information for a trusted contact person upon the opening of a customer’s account.

The proposal to amend the rule was initially pitched in late October 2016 and has gone through the comment phase up until FINRA adopted and the SEC approved it.