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Zorluk: Çok zorFinancial Exploitation of Senior Investors and Vulnerable Adults

An 81-year-old client's newly designated power of attorney submits two requests simultaneously: an unsolicited order to sell 50,000worthofequitysecuritiescurrentlyheldintheaccount,andarequesttowiretheexisting50,000 worth of equity securities currently held in the account, and a request to wire the existing 45,000 cleared cash balance to an unverified overseas bank account. The registered representative suspects potential financial exploitation by the power of attorney. Under FINRA Rule 2165 (Financial Exploitation of Specified Adults), which of the following actions is the member firm authorized to take regarding these requests?

  1. Place a temporary hold on the $45,000 cash wire disbursement while proceeding with the stock sale order, assuming no separate trading restrictions exist.Cevap
  2. B
    Place a temporary hold on both the securities sale order and the cash wire disbursement to freeze all account activity entirely.
  3. C
    Execute the cash wire disbursement because a valid power of attorney is on file, but reject the stock sell order until the account owner confirms it in writing.
  4. D
    Immediately revoke the power of attorney authorization on the account and transfer the remaining assets to a court-appointed custodian.

Cevap

Place a temporary hold on the cash wire disbursement while proceeding with the stock sale order, assuming no separate trading restrictions exist.
FINRA Rule 2165 allows member firms and qualified persons to place a temporary hold on the disbursement of funds or securities from the account of a specified adult when there is a reasonable belief of financial exploitation. It does not authorize member firms to freeze overall account trading or refuse customer trade execution orders. Therefore, placing a hold on the outgoing wire while processing the equity liquidation represents the exact compliant response.

Adım Adım Çözüm

1
Identify the scope of protection under FINRA Rule 2165.
FINRA Rule 2165 applies to 'Specified Adults' (individuals aged 65 and older, or aged 18 and older with physical/mental impairments) and allows member firms to place temporary holds on disbursements of funds or securities.
Understanding the precise boundary of Rule 2165 is essential to evaluate permitted actions.
2
Distinguish between fund disbursements and trade execution orders.
Wiring cash out of an account to an external institution is a disbursement request (subject to a temporary hold). Selling stock within the account converts securities to cash inside the account and is a trade order (not a disbursement).
FINRA Rule 2165 safe harbor provisions cover delaying outward disbursements when exploitation is suspected, but do not grant broad authority to block asset liquidations or trading unless independent grounds exist.
3
Select the compliant course of action for the firm.
The firm may place a temporary hold on the outgoing 45,000wiredisbursementwhileexecutingthe45,000 wire disbursement while executing the 50,000 equity sell order as requested.
This action correctly applies the temporary disbursement hold while respecting standard order execution obligations.

Anahtar Kavram

FINRA Rule 2165 Temporary Disbursement Hold Scope
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Konular

Financial Exploitation of Senior Investors and Vulnerable Adults