Protecting senior and vulnerable investors
Look out for your clients. When elder abuse, exploitation, or fraud is suspected, having Trusted Contacts for your clients helps you and Schwab act faster.
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
To better support clients who custody with Schwab when there is suspected elder financial exploitation or diminished capacity, Schwab has assembled a Senior & Vulnerable Investors Investigations team. This team helps resolve issues that require in-depth research and case management, while working and coordinating with you directly on sensitive cases.
Ensure that your firm knows when to report suspected fraud, diminished capacity, or financial exploitation to Schwab or the appropriate authorities and when, if ever, it may be time to terminate your relationship with the client. The Senior & Vulnerable Investors Investigations team can help review and investigate incidents to ensure appropriate measures are taken to secure your clients' accounts. If you suspect exploitation or diminished capacity, reach out to your Schwab Service team immediately.
We're here for you, like you're there for your clients.
If you're considering working with Schwab or going independent, know that we're invested in helping you safeguard your firm and your clients. Reach out to a Schwab Business Development Officer with your questions.