Your Money
In recent years, regulators have stressed the importance for financial firms to obtain a ‘trusted contact’ for each of their clients. A 'trusted contact' is someone whom the firm would be authorized to contact if they had a concern about the activity in a client’s account (e.g., concerns about diminished mental capacity, elder financial abuse, etc.) and were unable to get in touch with (or cannot discuss with) the client themselves. It is a potentially important tool in protecting seniors and other potentially vulnerable individuals from abuse and financial fraud.
Regulators have only asked that financial professionals request that information from clients. We believe a better practice would be to receive that information. So, put your thinking cap on as we will be contacting clients this quarter to update our records with that information.
Regulators Want Investors to Give Advisors a ‘Trusted Contact’
by Cheryl Winokur Munk
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