Protecting senior and vulnerable investors
Every second counts when elder abuse, exploitation, or fraud is suspected. Having a Trusted Contact on file helps you and Schwab act fast when it's most important.
Regulatory protections for investors
In February 2017, the U.S. Securities and Exchange Commission approved a proposed amendment to Rules 4512 and 2165, issued by the Financial Industry Regulatory Authority (FINRA), are intended to help you and Schwab help protect potentially vulnerable clients from exploitation. In addition to the FINRA rules, which apply to broker-dealers such as Schwab, more than 15 states now have laws that create new obligations for investment advisors, investment advisor representatives, and broker-dealers. Many more states are considering similar laws.
Schwab is here to help
Elderly investors are often fraud targets, especially as fraudsters get more aggressive and convincing. That’s where your service professionals and Schwab’s Senior & Vulnerable Investors Investigations team comes in to help you act fast when you suspect something fishy is going on.
First things first—if you suspect exploitation or diminished capacity occurs, reach out to your Schwab Service team immediately. From there, the Senior & Vulnerable Investors Investigations team coordinates with you directly on detailed research and case management. The team can help review what’s going on to ensure the right steps are taken to secure your clients’ accounts, point you to the appropriate authorities, and guide you on when, if ever, it may be time to terminate your relationship with your client.
Resources to fight back against fraud
If you work with Schwab, act now to stay ahead of scammers. Take these steps to help protect your clients and your firm (login required).
Consider adding a trusted financial caregiver to your clients' accounts:
- Beneficiary: Account holders should regularly evaluate their beneficiary designations and update them after major life changes, such as marriage, divorce, or the birth/legal adoption of a child. Update beneficiaries >
- Trusted Contact: A "Trusted Contact person" is an emergency contact that your firm or Schwab can contact in certain circumstances to help protect your client's account. This person does not have access to the account or transaction information. Create a Trusted Contact >
- Power of attorney: Someone with the legal authority to make decisions about your client's money or property. How to add power of attorney >
- Durable Power of Attorney: The agreement becomes effective upon signing.
- Springing Power of Attorney: The agreement only goes into effect if your client loses the ability to make sound decisions.
- Health Care Power of Attorney: Someone with the authority to make health care decisions on your client's behalf.
- Guardian: Someone appointed by a court to manage your client's money and property, if it's been decided that the client is incapacitated. Open a Guardian account >
We're here for you, like you're there for your clients
Online security is serious business for RIAs—and we make it our business to do all we can to safeguard your firm and your clients. So if you're considering working with Schwab, get in touch so we can help you make your next move with confidence.