FINRA Starts Sweeps to Protect Seniors
FINRA is also currently running two other sweeps. One examining the sale of collateralized mortgage obligations targeted at seniors, while the second is focused on the sale of life settlements.
Along with the sweeps, the regulator also issued a Regulatory Notice to remind firms about their obligations when selling to seniors. The notice outlined best practices in suitability and acceptable use of professional designations that firms can use when dealing with senior customers.
The notice also highlights key issues relevant to most senior investors, including managing retirement assets, evolving investment objectives and, in some cases, increased vulnerability to abusive or fraudulent sales practices.
