Securities industry watchdog, FINRA, has announced new rules which it hopes will help protect senior investors against financial exploitation.
A new proposal by FINRA will give older investors more protections. Brokerage firms will be able to temporarily hold accounts in which financial exploitation is suspected if the account holders are 65 years or older.
A particularly distasteful case recently came to our attention that describes how a former Wells Fargo Broker defrauded an elderly widow out of $650,000. Despicable. And, unfortunately, all too frequent an occurrence...
The elderly are common targets for financial adviser misconduct, fraud, and all kinds of other injurious, unlawful behavior. One tip for elderly people (and for the younger generations who should be looking out for them) to prevent being taken advantage of would be to take the time each month to review your account statements. If there is anything fishy or even just difficult to understand in the statements, schedule a meeting with your financial adviser in order for him and her to explain everything in the statements. If you have reason to suspect he or she is not being honest with you, begin to document these meetings and any other meetings you have with your adviser. It is a helpful way to remember what you were told; and, if you ever end up in arbitration for any reason, you will have an incredibly effective tool for an attorney arguing your case.
If you or anyone you know has been a victim of broker misconduct or securities fraud, please contact us for a free consultation.