Regulatory & Compliance | 08.15.26

FINRA Proposes New ‘Speed Bump’ To Thwart Fraudsters

by: Miriam Rozen

The Financial Industry Regulatory Authority (FINRA) has proposed allowing brokerage firms to delay transactions or fund disbursements for up to 10 days when there is reasonable suspicion of fraud. The measure would apply to all customer accounts, regardless of age or capacity and requires approval from the U.S. Securities and Exchange Commission. FINRA also proposed extending the maximum hold period for transactions involving customers 65 and older or those with impairments from 55 to 145 business days. The regulator cited increasingly sophisticated fraud schemes, including those powered by AI, as a growing threat to investors.

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