New Brokerage Account Rules to Protect Seniors

June 21, 2018
Brokerage Account

Two new rules went into effect in February 2018 in response to inappropriately distributed investment accounts owned by seniors. As the US population ages, elder financial abuse is a growing problem.  Millions of dollars have been drained from brokerage accounts owned by seniors. These two new rules will attempt to resolve this issue.

The first rule requires an investment advisor to obtain current information on a trusted contact when opening the brokerage account. This trusted contact will be a resource for the advisor to address any issues of potential financial exploitation as well as maintain information about the account holder’s health status or change in estate planning designees.

The second rule authorizes the investment advisor or broker to place a temporary hold on disbursements if any fraud is suspected on accounts owned by individuals age 65 or older. This allows more time for the investment advisor to investigate by speaking with the account owner and/or trusted contact or work with law enforcement while the money stays safely in the account.

To learn more about rules affecting seniors to prevent financial elder abuse, reach out to Stouffer Legal at 443-470-3599.

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