FINRA Proposes Amendments to Rule on Financial Exploitation of Specified Adults

FINRA proposed amendments to FINRA Rule 2165 ("Financial Exploitation of Specified Adults") to allow firms "to (1) extend a temporary hold on a disbursement of funds or securities or a transaction in securities for an additional 30-business days if the member firm has reported the matter to a state regulator or agency or a court of competent jurisdiction; and (2) place a temporary hold on a securities transactions where there is a reasonable belief of financial exploitation." The amendments would require the broker-dealer to maintain records as to the purpose and support for any temporary hold extension, such as information concerning communications with or by a relevant state regulator, agency or court.

Comments on the proposed amendments are due within 21 days of their publication in the Federal Register.