Addressing Senior and Aging Client concerns

With the aging of the US population, financial exploitation of seniors is a serious and growing concern among families, clients, advisors and regulators.   With these concerns in mind and for the protection of those seniors, aging clients and other susceptible adults, the regulators have provided some guidance and “Safe Harbors” while working with these individuals.

FINRA has made available the FINRA’s Securities Helpline for Seniors®.  Access and information for this resource can be found on the FINRA.org website.

*In addition, FINRA has amended rules to allow for the collection of name and contact information for a trusted contact person when opening up or updating account information.  Having this information available allows advisors to contact these trusted contacts if questions or concerns arise regarding the client.  In fact, FINRA has made it very clear that we should make every attempt to educate the client in the importance of providing this information.  Each of our custodians, our Spire NAF and the Spire IMA all include sections on obtaining the Trusted Contact information.   Of course this information is optional for the client to provide, however, as a Spire Advisor/Representative you are expected to provide reasonable efforts in gathering that information or you may be required to provide rationale for not capturing. 

*FINRA has also provided, in Rule 2165, the ability to temporarily place a hold on the disbursement of funds or securities from the account of a “specified adult” customer.

The FINRA guidance in Regulatory Notice 17-11 can be found on the Spire Support Site.

The Senior Safe Act which became federal law on 5/24/2018 may provide some immunity from liability in the case of proceedings regarding exploitation of seniors.   The Senior Safe Act Fact Sheet can be found on the Spire Support Site.