Protecting the vulnerable
Elderly clients have increasingly become targets for fraud and other financial wrongdoing. In response, FINRA says it will further increase protections for senior investors, with a particular focus on the suitability of recommended products. FINRA says there has been an uptick in questionable or inappropriate behavior.
"We are seeing numerous cases where registered representatives have recommended that senior investors purchase speculative or complex products in search of yield. While the quest for higher yield is not per se problematic, FINRA will assess whether such recommendations were suitable given an investor’s profile and risk tolerance, and whether firms have appropriate supervisory mechanisms in place to detect and prevent problematic sales practices."