01.09.26

FINRA Seeks To Extend Account Holds To Combat Elder Fraud

by: Nicola M. White

The Financial Industry Regulatory Authority (FINRA) has proposed rule changes to strengthen protections against investment fraud, particularly targeting scams that affect senior citizens. The plan would allow broker-dealers to extend temporary holds on accounts of clients aged 65 and older by up to three months when financial exploitation is suspected, beyond the current 55-day limit. FINRA said longer holds are needed to investigate increasingly complex, often AI-driven fraud schemes. The proposal also permits firms to delay transactions for any customer for up to five business days if fraud is suspected and allows the use of the term “emergency contact” to encourage clients to name a trusted person. Public comments are open until March 9.

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