Finra Seeks to Extend Holds on Accounts to Combat Elder Fraud

The Financial Industry Regulatory Authority has proposed rule changes aimed at combating investment scams — particularly against senior citizens — in part by empowering broker-dealers to extend delays on suspicious transactions.

The proposal, released Thursday, would add as much as three months to the amount of time brokerage firms can place holds on the accounts of clients 65 and older when they suspect financial exploitation. Current rules allow them to halt transactions for as long as 55 days.

“Given the complexity of modern fraud schemes and the time required for effective investigation and intervention, FINRA believes that extending the ...