The Broker-Dealer's Role in the Detection and Prevention of Elderly Financial Exploitation
Piaba Bar Journal, Vol. 23 No. 2, 2016
23 Pages Posted: 2 Dec 2016
Date Written: November 7, 2016
An estimated one million elders a year lose nearly $3 billion due to financial abuse, and the problem is expected to grow because the U.S. population is aging. Although federal and state regulators have long recognized the role that broker-dealers and investment advisers can play in identifying, preventing and reporting financial abuse, there is no uniform approach or set of standards. Instead, the current landscape is an evolving patchwork quilt of federal and state law, pending rule proposals to address discrete issues, recommended (but not required) steps from regulators and best practices implemented by individual firms. This article will review this evolving landscape and proposed regulatory reforms that can significantly impact elder financial exploitation.
Keywords: diminished capacity, incapacity, cognitive decline, seniors, broker, dealer, investment adviser, financial abuse, exploitation, FINRA, SEC, securities
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