The Financial Industry Regulatory Authority — FINRA — approved a new rule effective February 2018.
All financial advisers are required to make reasonable efforts to obtain the name of and contact information for a trusted contact person upon opening a new account or when updating account information for existing clients.
A trusted adviser is a person intended to be a resource for the financial adviser in administrating your account to avoid possible financial exploitation. This person must be at least 18 years old and someone who serves as your advocate, should personal circumstances arise such as a change to your help, capacity, availability, behavior or financial activity.
A trusted adviser is a person intended to be a resource for the financial adviser … who serves as your advocate, should personal circumstances arise such as a change to your help, capacity, availability, behavior or financial activity.
Your trusted contact person is authorized to receive information regarding your account. Your financial adviser can confirm with your trusted contact person the existence of a power of attorney, successor trustee or other named fiduciary.
The trusted contact person is not your power of attorney and cannot place trades, change your account ownership address, or make withdrawals or other transactions on your account.
Naming a trusted contact person is optional. You may change or terminate your trusted person at any time by notifying your financial adviser in writing.
For questions regarding this new FINRA rule or any issue regarding your estate planning, contact R. F. Meyer & Associates today at 614-407-7900 or [email protected].