ASA Supports FINRA Proposal to Strengthen Fraud Protections for All Investors

WASHINGTON – The American Securities Association (ASA) today submitted a comment letter to the Securities and Exchange Commission (SEC) supporting the Financial Industry Regulatory Authority's (FINRA) proposed rule change which would permit broker-dealers to temporarily delay a customer’s request if the broker-dealer reasonably believes the customer is the target of fraud.

"Protecting senior investors from fraud and exploitation is a priority we share with FINRA, and this proposal gives firms practical tools to do that," said ASA Chief Legal Officer Jessica Giroux.

The letter builds on ASA's March 2026 comments on FINRA Regulatory Notice 26-02 and notes that the filing reflects several of ASA's recommendations, including:

• Allowing customers to designate a single trusted or emergency contact across all accounts, while preserving the option to designate contacts account by account;

• Permitting associated persons in specialized senior-investor-protection or fraud-prevention roles to place, extend, or terminate Rule 2165 holds, and adding federal regulators and agencies to the hold extension framework; and

• Confirming a firm may end a Rule 2166 delay early once it no longer reasonably believes fraud is occurring.

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The American Securities Association (ASA) represents the retail and institutional capital markets interests of regional financial services firms who provide Main Street businesses with access to capital and advise hardworking Americans how to create and preserve wealth. ASA’s mission is to promote trust and confidence among investors, facilitate capital formation, and support efficient and competitively balanced capital markets. This mission advances financial independence, stimulates job creation, and increases prosperity. The ASA has a geographically diverse membership of almost one hundred members that spans the Heartland, Southwest, Southeast, Atlantic, and Pacific Northwest regions of the United States.