During an internal compliance review, a registered representative is questioned regarding FINRA regulations designed to protect senior investors and vulnerable adults from financial exploitation. Which of the following statements regarding FINRA Rule 2165 and FINRA Rule 4512 are CORRECT?
- FINRA Rule 2165 permits a member firm to place an initial temporary hold of up to 15 business days on disbursements of funds or securities when financial exploitation is reasonably suspected.Cevap
- FINRA Rule 4512 requires member firms to make reasonable efforts to obtain the name and contact information for a trusted contact person upon opening or updating a non-institutional customer account.Cevap
- CPlacing a temporary hold under FINRA Rule 2165 automatically prevents the customer from executing buy or sell orders for securities within the account.
- DMember firms are permitted to apply FINRA Rule 2165 temporary disbursement holds only to account holders who are at least 75 years of age.
Cevap
The correct statements are that FINRA Rule 2165 permits an initial temporary disbursement hold of up to 15 business days upon reasonable suspicion of financial exploitation, and FINRA Rule 4512 requires member firms to make reasonable efforts to obtain trusted contact person information when opening or updating a customer account.
The correct statements accurately reflect FINRA regulations: Rule 2165 permits an initial temporary hold of up to 15 business days on disbursements of cash or securities from accounts of specified adults when financial exploitation is reasonably suspected. Rule 4512 requires member firms to make reasonable efforts to obtain trusted contact person information when opening or updating non-institutional customer accounts.
Adım Adım Çözüm
Anahtar Kavram
FINRA Rules 2165 and 4512 Financial Exploitation Safeguards