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Senior Investors

FINRA views the protection of senior investors, as well as baby boomers who are retired or approaching retirement, as a top priority. Because a large number of American investors are approaching retirement and control a substantial portion of investment assets, FINRA encourages firms to review and, where warranted, enhance their policies, procedures and practices, in light of the special issues common to many senior investors.

For example, a firm's procedures and controls should take into consideration the age and life stage (whether pre-retired, semi-retired or retired) of their customers. Of particular concern to FINRA is the suitability of recommendations to senior investors, communications targeting older investors, and potentially abusive or unscrupulous sales practices or fraudulent activities targeting senior investors.

Financial Exploitation of Seniors

With the aging of the U.S. population, financial exploitation of seniors is a serious and growing problem. FINRA’s Securities Helpline for Seniors® has highlighted issues relating to financial exploitation of this group of investors, including the need for members to be able to more quickly and effectively address suspected financial exploitation of seniors and other specified adults.

FINRA rules provide members with ways to respond to situations in which they have a reasonable basis to believe that financial exploitation has occurred, is occurring, has been attempted or will be attempted. Members can better protect their customers from financial exploitation if they have the ability to contact a customer’s designated trusted contact person and, when appropriate, place a temporary hold on a disbursement of funds or securities from a customer’s account.

FINRA Rule 4512 requires members to make reasonable efforts to obtain the name of and contact information for a trusted contact person upon the opening of a non-institutional customer’s account or when updating account information for a non-institutional account. The trusted contact person is intended to be a resource for the member in administering the customer’s account, protecting assets and responding to possible financial exploitation.

FINRA Rule 2165 (Financial Exploitation of Specified Adults) permits, under FINRA rules, a member that reasonably believes that financial exploitation has occurred, is occurring, has been attempted or will be attempted to place a temporary hold on the disbursement of funds or securities from the account of a “specified adult” customer. Specified adults include a natural person age 65 and older or a natural person age 18 and older who the member reasonably believes has a mental or physical impairment that renders the individual unable to protect his or her own interests.

FINRA Examinations

FINRA’s exams focus on a broad range of topics relating to the protection of senior investors, including:

  • the types of securities and suitability of securities sold to senior investors
  • training of firm representatives with regard to senior specific issues and how firms address issues relating to aging (e.g., diminished capacity and elder financial abuse or exploitation);
  • use of senior designations
  • firms’ marketing and communications to senior investors
  • types of customer account information required to open accounts for senior investors
  • disclosures provided to senior investors
  • complaints filed by senior investors and the ways firms track those complaints
  • supervision of registered representatives as they interact with senior investors

Securities Helpline for Seniors

In 2015, FINRA launched the toll-free FINRA Securities Helpline for Seniors® to provide older investors with a supportive place to get assistance from knowledgeable FINRA staff related to concerns they have with their brokerage accounts and investments.

Senior investors can call FINRA's toll-free FINRA Securities Helpline for Seniors (844-57-HELPS or 844-574-3577) from 9:00 a.m. – 5:00 p.m. ET, Monday through Friday, and get neutral, knowledgeable assistance with:

  • understanding how to review investment portfolios or account statements;
  • concerns about the handling of a brokerage account; and
  • investor tools and resources from FINRA, including BrokerCheck®.

The Report on the FINRA Securities Helpline for Seniors highlights important lessons for investors gleaned from calls and lays out effective practices for firms to consider when working with senior investors.

National Senior Investor Initiative

In 2013, FINRA and the SEC initiated an assessment of firms' policies and practices regarding their senior investor clients. This on-going effort focuses on suitability, disclosures, misrepresentation, advertising, pricing, compensation and supervision relating to recommended products and services.

The assessment also reviews firm’s written supervisory procedures to determine whether firms have placed adequate controls to identify potential financial abuse of senior investors or individuals with diminished mental capacity. We have found, among other things, that age plays a role in many firms' supervisory processes.

Download: The SEC / FINRA National Senior Investor Initiative Report

Senior Designations

In November 2011, FINRA issued Regulatory Notice 11-52 addressing the use of certifications and designations that imply expertise or specialty in advising senior investors (senior designations). The notice outlines findings from a survey of firms which focused on the prevalence of senior designation usage, the extent to which particular senior designations were used or prohibited, and the supervisory systems in place regarding senior designations. It also highlights practices used by firms regarding the use of senior designations. FINRA encourages firms to consider strengthening their supervisory procedures by implementing, as appropriate to their business, the sound practices outlined in this notice.

Use FINRA's Professional Designations tool to look up requirements to earn and maintain designations, including senior designations.

FINRA Investor Education Foundation

Since its establishment in 2003, the FINRA Investor Education Foundation has played a central role in FINRA's senior investor education and outreach efforts. The FINRA Foundation employs national, state and grassroots partnerships to develop and distribute fraud prevention resources, conduct outreach, and train consumers, law enforcement professionals and victim advocates.

Since 2008, the FINRA Foundation has touched hundreds of thousands of consumers with essential fraud prevention messages, trained more than 900 law enforcement officers from over 400 agencies, developed and nationally distributed two public television documentaries, and equipped thousands more stakeholders to fight fraud in communities nationwide.

Moreover, the FINRA Foundation continues to engage in research to understand fraud prevalence, the mechanics and impact of investment fraud, if and why older consumers are more heavily victimized, and behavioral and neurological risk factors.


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SEC Approves Rules Relating to Financial Exploitation of Seniors
March 30, 2017
FINRA Provides Guidance on Firm Responsibilities for Sales of Pension Income Stream Products
April 18, 2016
FINRA Requests Comment on Rules Relating to Financial Exploitation of Seniors and Other Vulnerable Adults
October 15, 2015
FINRA Reminds Firms of Their Obligations Regarding the Supervision of Registered Persons Using Senior Designations
November 11, 2011
FINRA Reminds Firms of Their Obligations Relating to Senior Investors and Highlights Industry Practices to Serve these Customers
September 10, 2007
In February 2017, the SEC approved: (1) the adoption of new FINRA Rule 2165 (Financial Exploitation of Specified Adults) to permit members to place temporary holds on disbursements of funds or securities from the accounts of specified customers where there is a reasonable belief of financial exploitation of these customers; and (2) amendments to FINRA Rule 4512 (Customer Account Information) to require members to make reasonable efforts to obtain the name of and contact information for a trusted contact person (“trusted contact”) for a customer’s account. New Rule 2165 and the amendments to Rule 4512 become effective February 5, 2018.
January 3, 2018
Part four of this six-part series covers sales practice priorities like senior investors and anti-money laundering.
July 21, 2015
Part two of this two-part series presents guidance on supervising the use of senior designations to imply expertise with senior and retirement investing.
December 12, 2011
Part one of a two-part series on the use of senior designations to imply expertise with senior and retirement investing.
November 28, 2011
Mary Schapiro discusses one of FINRA's top priorities: protecting senior investors from fraud.
February 11, 2008
This podcast discusses the sensitive issues of working with customers who show signs of diminishing mental capacity and responding to suspected financial abuse.
December 27, 2007
This podcast examines how "free lunch" seminars are sometimes used to mislead senior investors-and how FINRA is responding.
December 10, 2007
Investor Alert
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Investor Education
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Investor Education
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Investor Education
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Investor Education
A toll-free number that senior investors can call to get assistance from FINRA or raise concerns about issues with brokerage accounts and investments.
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Selling your life insurance policy for cash might seem attractive, but life settlements can be costly if you're not careful. Research all your options before making up your mind. Listen to learn more.
Investor Education
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Investor Alert
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