BROWSE BY TOPIC
Stories of Interest
- Credit Suisse Fully Compliant on Sanctions: CEO
- Ex-UBS Metals Trader Beats Spoofing Conspiracy Charge
- Investment Advisor, WCAS Management Corp, To Pay Nearly $800K Over Conflicts of Interest
- Altaba, fka Yahoo!, to Pay $35Mn for Failing to Disclose Massive Cybersecurity Breach - SEC
- SEC Formerly Bars Martin Shkreli from Industry
- HF Billionaire Steve Cohen Buying Into Fintech Start-Ups
- Deutsche Bank Is Weighing Massive Cuts in Its U.S. Cash Equities Unit
- Richard Jenrette, Co-Founder of DLJ Investment Bank, Dies at 89
- Goldman Sachs Makes First Hire in Cryptocurrency Markets Unit
- Special FINRA Election to Fill Large Firm Governor Vacancy
- Chicago-Based Investment Adviser Sentenced to 151 Months in Prison - SEC
- Dun & Bradstreet Hit With FCPA Violations - SEC
- SEC Charges Additional Defendant in Fraudulent ICO Scheme
- Warren Buffett Simply Blew it on Wells Fargo Stock: Dick Bove (Video)
- Barclays and Deutsche Bank to Lag U.S. Trading Peers
- NY AG Schneiderman Seeks to Close Loophole That Could Let Trump Pardons Block State Charges
- 'Fearless Girl' is Moving to NYSE After Year Staring Down 'Charging Bull'
- What's In Your Wallet - American Express Shares Soar After Earnings Release
- Deutsche Bank's Executive Departures Continue Following Change in CEO
- Reflections of an Economist Commissioner (SEC's Piwowar)
We seek to provide information, insights and direction that may enable the Financial Community to effectively and efficiently operate in a regulatory risk-free environment by curating content from all over the web.
Stay Informed with the latest fanancialish news.
NEWSLETTERS & ALERTS
How Well Do Broker-Dealers Service Senior Investors? NASAA Has Answers
[Photo: Consumer Reports]
The North American Securities Administrators Association (NASAA) issued the results of a survey on the practices and procedures that broker-dealers employ to help protect senior clients. Sixty broker-dealers participated in the survey, which includes information about firm supervisory procedures, training, escalation and reporting of senior issues, resolution of senior issues, and use of trusted contact forms
“Being face-to-face with clients puts financial services professionals on the frontlines when it comes to stopping suspected cases of senior financial fraud and exploitation. As the U.S. population ages, the financial industry can help detect and report financial crime and abuse of the elderly and other vulnerable adults.” Mike Rothman, NASAA President and Minnesota Commissioner of Commerce.
STUDY HIGHLIGHTS. The following statistics pertain to those broker-dealers who responded to NASAA’s survey:
- 54% lacked a formal policy defining senior customers.
- 34% had a dedicated team responsible for senior-related issues.
► 90% had either a dedicated team or at least some type of internal process for addressing senior issues.
- 30% had created senior-specific policies and procedures.
- 95% provided some type of training on senior issues; the most common - recognizing signs of elder financial abuse.
- 94% had a formal process to internally report concerns regarding diminished capacity and/or elder financial abuse.
- 19% did not have a decision-maker responsible for reporting concerns to agencies/authorities outside of the firm.
- Reporting by firms to adult protective services occurred in at least 62% of internally escalated cases, but less frequently to local law enforcement (4%) or state securities regulators (<1%).
- 49% did not disclose or identify any particular resource they used to assist senior clients.
- 41% had developed a form for customers to identify an emergency or trusted contact person.
OVERVIEW, METHODOLOGY OF THE STUDY. Respondents were asked to respond to 18 questions about their firm’s practices and policies applicable to senior customers. Responses were received in April and May 2016. Certain firms were removed from the analysis because they did not engage in retail securities business and had no senior clients. The selection of the broker-dealers for the study was random [Financialish: More likely ‘judgmental’] but tended to focus on larger firms..
The study also sought copies of policies and procedures regarding senior customers, any brochures about diminished capacity or elder financial abuse or exploitation, any forms used to collect the identification of a trusted or emergency contact person, and data regarding the number of cases reported to adult protective services or other authorities.
The following sections of this report summarize findings from the study with respect to:
- supervisory procedures,
- escalation and reporting of senior issues,
- resolution of senior issues (including resources used to assist senior clients), and
- use of the trusted contact form.
[Click here for full NASAA Report.]