The Financial Industry Regulatory Authority (FINRA) is designed to help protect investors from unscrupulous brokers and financial firms. To that end, FINRA has recently adopted some new rules designed to help protect seniors from financial exploitation.
Seniors and the elderly are some of the most vulnerable people in our society. Scams designed to take advantage of seniors are depressingly common. FINRA is taking steps to address problem areas that unethical brokers and firms use to take advantage of seniors when it comes to investments.
An extension of the “hold” period
FINRA has opted to extend the “hold” period on securities transactions when there is evidence of financial exploitation. In addition, a temporary hold will take effect if a securities transaction took place, and there is a belief that fraud occurred.
The new rules are not a cure-all
Any advances FINRA makes to help protect vulnerable investors are welcome. However, these new rules will not put an end to exploitative actions taken by some brokers. In a perfect world, brokers and financial firms would operate above-board. However, there are still unsavory characters out there who are only interested in their own financial gain.
You should always keep an eye out for Ponzi schemes, pyramid schemes, insider trading, and other illegal actions. You should be wary if your investor seems to be overpromising or is making claims that seem too good to be true. If you believe you’ve been the victim of financial fraud or exploitation, you should contact an attorney experienced in securities law with a track record of results.