FINRA's board has advanced a proposal to help curb financial exploitation of elderly investors, giving a thumbs-up to a new rule that would allow brokers to put a hold on a transaction request if they suspect the client is the victim of abuse.

FINRA explains that the proposed rule would not create any obligation for a broker to delay the disbursement of funds or securities, but rather would offer safe-harbor protections from legal liability if a broker chose to do so under "a reasonable belief of financial exploitation."

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