Which regulation allows a adviser to place a temporary hold on disbursements from an elder account if financial abuse is suspected?

Which regulation allows a adviser to place a temporary hold on disbursements from an elder account if financial abuse is suspected?

• A. Elder Justice Initiative
• B. FINRA Rule 4512
• C. FINRA Rule 2165
• D. Senior Safe Act

Answer: (C)

When protecting an elder or at-risk adult, a regulator provides a tool for stopping possible abuse: a temporary hold on disbursements and transfers from the suspicious account. This authority is found in FINRA Rule 2165. It lets a member firm pause withdrawals or disbursements if there’s a reasonable belief that financial exploitation is occurring, giving time to investigate, confirm the situation, and implement protective steps. The hold is temporary—typically up to 15 business days—and can be extended with supervisory approval if needed. Documentation and prompt, appropriate communication are part of the process. Other options listed refer to different initiatives or statutes that address elder protection in broader terms, not the specific mechanism to freeze disbursements in a suspected exploitation case.

When protecting an elder or at-risk adult, a regulator provides a tool for stopping possible abuse: a temporary hold on disbursements and transfers from the suspicious account. This authority is found in FINRA Rule 2165. It lets a member firm pause withdrawals or disbursements if there’s a reasonable belief that financial exploitation is occurring, giving time to investigate, confirm the situation, and implement protective steps. The hold is temporary—typically up to 15 business days—and can be extended with supervisory approval if needed. Documentation and prompt, appropriate communication are part of the process. Other options listed refer to different initiatives or statutes that address elder protection in broader terms, not the specific mechanism to freeze disbursements in a suspected exploitation case.