Under FINRA Rule 4512, broker-dealers must make reasonable efforts to obtain the name of a trusted contact person when opening a customer account. What is the trusted contact person used for?

Why A — To be contacted in cases of suspected financial exploitation, health concerns, or to confirm contact information

The trusted contact person is someone the firm can reach out to in limited circumstances: to address possible financial exploitation, confirm the customer's current contact information, or inquire about the customer's health or mental capacity if the firm has concerns. The trusted contact is NOT authorized to trade in the account (A), does not co-sign transactions (B), and does not automatically receive account statements (D). The customer is not required to provide a trusted contact, but the firm must make reasonable efforts to obtain one.