Regulatory Alerts2026-01-08 | Regulatory Notice 26-02Added · Updated
FINRA Requests Comment on Rule Revisions to Help Member Firms Protect Senior Investors From Financial Exploitation and All Investors From Fraud
FINRA proposes amendments to Rules 4512 and 2165 and a new Rule 2166 to enhance protections for customers. The changes allow member firms to use the term "emergency contact" instead of "trusted contact" and permit a single contact designation across all customer accounts. Additionally, the maximum temporary hold period under Rule 2165 is extended from 55 to 145 business days in three 30-day increments, subject to specific safeguards and reporting requirements. The new Rule 2166 introduces a five-business-day "speed bump" allowing temporary delays on disbursements or transactions when there is a reasonable belief of fraud affecting any customer.