FINRA Close to Filing Fraud Rule for ‘Vulnerable’ Investors

The Financial Industry Regulatory Authority plans to file “imminently” with the Securities and Exchange Commission for approval its proposed Rule 4512 to help block elderly and vulnerable investors from financial exploitation, Susan Axelrod, FINRA’s head of regulatory operations, said Wednesday.

Speaking on a panel at the National Society of Compliance Professionals annual meeting in Washington, Axelrod noted along with Joseph Snyder of the Philadelphia Corporation for Aging, that it’s not just about protecting “senior” investors these days, but all investors that fall into the “vulnerable” category—those with diminished capacity, disabilities, and even those in the military.

“We don’t think of it just as seniors; it’s got to be much broader,” Axelrod said. “I don’t think we define age limit” when categorizing those who face fraud.  

This article was published on ThinkAdvisor.com on October 19, 2016.