FINRA proposes amendments to senior investor protection rules
The changes would affect senior and vulnerable investors and member firms, with the filing dated August 20, 2026.
On August 20, 2026 FINRA filed a proposed rule change with the SEC, and the Commission published the notice on September 3, 2026. The filing seeks to amend FINRA Rules 0150, 2165 and 4512 and to adopt a new Rule 2166.
The amendments are intended to modernize protections for senior and vulnerable investors and to expand fraud-prevention tools for all customers. Rule 2166 would create a temporary-delay mechanism for transactions suspected of fraud, while Rule 2165 would continue to allow temporary holds on accounts of "Specified Adults."
FINRA highlights that only 42 percent of surveyed investors have authorized a trusted contact person, up from 38 percent in 2021, and that 53 percent say they have not designated one. Among those without a trusted contact, 49 percent indicate they would be willing to do so.
Under the current Rule 2165 framework, a member firm may place a temporary hold for an initial period of 15 to 25 business days, with a single 30-business-day extension, for a total maximum of 55 business days. FINRA notes feedback that investigations can exceed a year, creating challenges for the existing limit.
The notice cites FTC data that fraud against older adults cost approximately $81.5 billion in 2024, and FBI IC3 reports of more than $7.7 billion lost to fraud by Americans over age 60 in 2025.
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