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SIE: Investment Companies & Packaged Products
SIE practice questionmediumElder Financial Exploitation

Under FINRA Rule 2165, a broker-dealer may place a temporary hold on disbursements from a senior investor's account if the firm reasonably believes financial exploitation is occurring. How long can the initial hold last?

  1. A30 business days
  2. B15 business days
  3. C25 business days✓ Correct answer
  4. D5 business days
Explanation

Why C25 business days

FINRA Rule 2165 allows firms to place a temporary hold on disbursements for up to 15 business days (with an additional 10-business-day extension, totaling 25 business days) when there is a reasonable belief that financial exploitation of a senior investor (65+) or vulnerable adult is occurring. The firm must immediately notify the customer's trusted contact person and initiate an internal review. This rule was adopted to help protect seniors from financial abuse while balancing their right to access their assets.

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