FINRA to the rescue: Pausing scams on granny's nest egg
Published Date: 9/9/2026
Notice
Summary
FINRA is updating its rules to better protect seniors and vulnerable investors from financial scams. They’re changing how certain securities are handled, improving safeguards against financial abuse, and adding a new rule to pause suspicious transactions quickly. These changes affect investors, brokers, and firms, aiming to stop fraud faster and keep money safer, with no direct cost impact announced yet.
Analyzed Economic Effects
5 provisions identified: 5 benefits, 0 costs, 0 mixed.
Longer Holds to Protect Seniors' Assets
If you are a "Specified Adult" age 65 or older, FINRA proposes to extend the maximum temporary hold period firms can place on transactions or disbursements from 55 business days to 145 business days, via three additional 30-business-day extensions. The rule requires firms to document follow-up efforts, notify authorized parties and trusted contact person(s) about extensions, and permits extension requests by state or federal regulators or courts.
Extended Holds for Adults with Impairments
FINRA proposes the same expanded temporary hold framework (up to 145 business days, with documentation and notification safeguards) for "Specified Adults" who are age 18 or older and whom the firm reasonably believes have a mental or physical impairment that renders them unable to protect their own interests. The rule codifies follow-up and recordkeeping requirements and allows extensions when relevant authorities request more time.
10-Day Speed Bump for Suspected Fraud
FINRA proposes a new Rule 2166 that would allow firms to place a temporary delay of up to 10 business days on a transaction or disbursement for any customer (natural persons age 18 and older) when there is a reasonable belief of fraud. Firms must notify the customer within two business days, keep records of the basis for the delay, and the delay expires no later than 10 business days unless a regulator or court extends it.
Protections Extend to Crypto and Other Assets
FINRA proposes changing references from "funds or securities" to "funds, securities, or other assets" in Rule 2165 and the new Rule 2166 so that firms may place temporary holds or delays on any customer assets they hold, including payment stablecoins and other crypto assets.
Easier Use of 'Trusted' or 'Emergency' Contacts
FINRA proposes amending Rule 4512 to let firms use the term "emergency contact" as an alternative to "trusted contact person," allow a customer to authorize a trusted/emergency contact to apply across all existing and future accounts at the firm, and clarify that firms may collect more than one trusted contact. Firms must reflect the equivalence in procedures and training.
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Key Dates
Department and Agencies
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