Beginning Feb. 5, 2018, the Financial Industry Regulatory Authority (FINRA) is requiring member firms, including Landaas & Company, to ask clients for names and contact information of trusted, independent individuals who can be reached if concerns arise about the client.
For instance, if associates have trouble reaching a client after multiple attempts or suspect that a client may be losing cognitive capacity or behaving erratically out of character, they can reach the trusted contact as a resource.
The trusted contacts could be relied on to verify the physical or mental well-being of a client, but they also could help determine whether a client is possibly being exploited financially. If transactions or requests raise suspicions that a client is being taken advantage of, the trusted contact could help address the concerns. Elderly investors are particularly vulnerable to fraud, which is one of the reasons FINRA has established the trusted contact rules.
FINRA requires the contacts to be older than 18. Landaas & Company suggests the contacts not be someone already authorized to transact business in the client’s account. Otherwise, they might have a conflict of interest when exploitation is suspected.
Your advisor will be asking you to fill out a trusted contact form. To request a form in advance, please contact your advisor team.
Learn more
First Uniform, National Standards to Protect Senior Investors, from FINRA
Keeping family in the financial loop, a Money Talk Video with Isabelle Wiemero
5 tips for naming beneficiaries, a Money Talk Video with Mike Hoelzl
Securing elder finances, by Joel Dresang
When a loved one passes, what happens to their accounts?, from FINRA