US financial watchdog the Financial Industry Regulatory Authority is considering extending an incoming rule that's designed to protect elderly clients from fraudulent disbursements from brokerage accounts. If adopted, the extension would also allow the suspension of suspected fraudulent transactions. As it stands, Rule 2165, which comes into effect in 2016, will allow broker-dealers to freeze disbursements from accounts of elderly clients if fraud is suspected.
US financial watchdog the Financial Industry Regulatory Authority is considering extending an incoming rule that's designed to protect elderly clients from fraudulent disbursements from brokerage accounts. If adopted, the extension would also allow the suspension of suspected fraudulent transactions. As it stands, Rule 2165, which comes into effect in February, will allow broker-dealers to freeze disbursements from accounts of elderly clients if fraud is suspected.