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Zorluk: KolayFinancial Exploitation of Senior Investors and Vulnerable Adults

Under FINRA Rule 2165 regarding the financial exploitation of specified adults, a member firm that suspects financial exploitation is permitted to place a temporary hold on trade executions in the customer's account.

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False. FINRA Rule 2165 authorizes member firms to place temporary holds on disbursements of funds or securities from specified adult customer accounts, but it does not permit holds on trade executions.
The statement is false because FINRA Rule 2165 grants broker-dealers the authority to place temporary holds specifically on requested disbursements of funds or securities from specified adult customer accounts. It does not allow member firms to freeze trade executions or refuse to execute buy/sell orders placed by the customer.

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1
Identify the primary purpose and scope of FINRA Rule 2165.
FINRA Rule 2165 allows member firms to place temporary holds when there is reasonable suspicion of financial exploitation of a specified adult.
Understanding the precise legal authority granted by FINRA regulations is essential.
2
Differentiate between a disbursement hold and a trade execution hold.
A disbursement hold prevents funds or securities from exiting the account (e.g., wire transfers, check requests), whereas a trade execution hold would prevent buying or selling securities within the account. Rule 2165 applies exclusively to disbursements.
FINRA rules explicitly distinguish between holding outbound disbursements and executing customer trading orders.

Anahtar Kavram

FINRA Rule 2165 Temporary Hold Scope (Disbursements vs. Trade Executions)
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Konular

Financial Exploitation of Senior Investors and Vulnerable Adults