New FINRA Rule on Financial Exploitation of Elders

The Financial Industry Regulatory Authority (FINRA) recently announced that the Securities & Exchange Commission (SEC) has approved a new rule that relates to the financial exploitation of elders. The Financial Exploitation of Specified Adults rule permits member institutions to place temporary holds on the disbursement of funds or securities from certain customer accounts if they reasonably suspect that the customer has been subject to financial exploitation. The rule also requires financial institutions to make reasonable efforts to obtain the name of a trusted person to contact about the customer’s account. This rule becomes effective on February 5, 2018.

According to the commentary justifying the new rule, financial exploitation of seniors continues to grow, particularly as the American population increasingly ages. In fact, a recent MetLife study estimates that about one million seniors lose an estimated $2.6 billion due to financial exploitation and related forms of abuse. The provisions of the new rule will allow member institutions to be able to more quickly identify and address potential financial exploitation of senior customers. By placing holds on accounts and being able to contact a trusted person, member institutions hope to prevent continuing financial exploitation from continuing to occur. This rule is indicative of the growing recognition of financial exploitation of the elderly.

If in-home senior care or long-term facility care should lead to financial exploitation, physical or emotional abuse or injuries, you may have legal grounds for a lawsuit against the individual and agency that allowed the abuse or neglect to occur. If you or a loved one is in this situation, you should definitely contact an experienced Wisconsin elder abuse and neglect attorney at Boller & Vaughan. We know how to protect your rights and potentially get you compensation for any injuries that occurred. When professional caregivers fail to meet the duty of care owed to you or your loved one, it is up to you to hold negligent Wisconsin home health care agencies and nursing facilities responsible for their actions. Contact Boller & Vaughan today and see what assistance we can offer you and your family.