A 70-year-old account holder visits a broker-dealer branch and requests an immediate $60,000 wire transfer to an unfamiliar third-party account. Upon reviewing the client's account history, the registered representative notices unusual transfer requests and suspects financial exploitation. The firm decides to place a temporary hold on the wire disbursement pursuant to FINRA Rule 2165. Which of the following statements regarding the regulatory rules and requirements governing this situation are correct?
- The 70-year-old client qualifies as a specified adult under FINRA Rule 2165 based on age criteria alone.Cevap
- The temporary hold under FINRA Rule 2165 applies to the disbursement of funds or securities rather than serving as an automatic freeze on all security trade executions.Cevap
- CPlacing the hold automatically freezes all securities trading in the account and mandates the immediate cancellation of all existing unexecuted limit orders.
- The initial temporary hold on the fund disbursement may remain in effect for up to 15 business days while the member firm conducts an internal review.Cevap
Cevap
The correct statements are that the 70-year-old client qualifies as a specified adult based on age, the temporary hold applies to disbursements rather than trade execution blocks, and the initial hold duration can last up to 15 business days.
The statements confirming that a 70-year-old client qualifies as a specified adult (age 65+), that Rule 2165 applies to disbursements rather than serving as an automatic trading freeze, and that the initial hold period is up to 15 business days are all accurate under FINRA regulatory guidelines.
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Anahtar Kavram
FINRA Rule 2165 Financial Exploitation Protections and Disbursement Holds