The FINRA plan would require member firms to “make reasonable efforts” to obtain the name of and contact information for a trusted contact person for a customer’s account by amending Rule 4512 (Customer Account Information).
The rule would also allow advisers/brokers to place a temporary hold on transactions that could be fraudulent by creating a new FINRA Rule 2160 (Financial Exploitation of Eligible Adults), and applies to investors aged 65 or older as well as investors 18 and older who have a mental or physical impairment that renders them unable to protect their own interests.
FINRA Close to Filing Fraud Rule for ‘Vulnerable’ Investors: "