Compliance Newsflash – February 7, 2018

February 7, 2018

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New FINRA Rules Take Effect to Protect Seniors and Vulnerable Adults from Financial Exploitation
On February 5, 2018 two FINRA rule changes took effect that addressed the financial exploitation of seniors and vulnerable adults, putting in place the first uniform, national standards to protect senior investors. Firms are now required to make reasonable efforts to obtain the name of and contact information for a trusted contact person for a customer’s account. In addition, the rule permits FINRA member firms to place a temporary hold on a disbursement of funds or securities when there is a reasonable belief of financial exploitation, and to notify the trusted contact of the temporary hold.
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DOL, SEC Fiduciary Rules Likely in Fall
The Securities and Exchange Commission and the Labor Department will likely release their fiduciary rule proposals simultaneously in the fall, prominent ERISA attorneys say. Fall “is a reasonable estimate,” said Brad Campbell, former head of Labor’s Employee Benefits Security Administration, who’s now counsel with Drinker Biddle & Reath, during the firm’s recent Inside the Beltway webcast. “If you assume that they [Labor] needs to complete their changes by July 2019, which is when the deferred provisions of the current exemptions – the most onerous parts” of Labor’s fiduciary rule take effect, fall “really is the deadline for action by DOL.”
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