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FINRA Customer Beneficiary Proposal Improves Investor Protections

ASA strongly supports efforts by FINRA and the SEC to enforce rules that prevent unscrupulous actors from taking advantage of their clients.


WASHINGTON – The American Securities Association (ASA) today sent a letter to the Financial Industry Regulatory Authority (FINRA) supporting its efforts to reduce investor abuse and protect seniors by implementing more stringent policies regarding how a registered representative can be named the beneficiary of a customer’s inheritance.


“ASA strongly supports efforts by FINRA and the SEC to enforce rules that prevent unscrupulous actors from taking advantage of their clients, particularly those who are elderly, vulnerable, or may not have the capacity to make sound decisions on their own.” ASA CEO Chris Iacovella wrote in the letter. “These practices are shameful and they only serve to impugn the reputation of the entire financial services industry.” 

“We are pleased that the Proposal recognized that many firms already have some type of policy in place to limit or prohibit beneficiary designations that do not involve a familial relationship,” Iacovella continued. “We believe that the Proposal strikes the correct balance as it would not prohibit firms from implementing their own more stringent policies than outlined under Rule 3241, but it does provide some baseline expectations for what firms should do to prevent abuses.”


To read ASA’s full letter to FINRA in support of proposed Rule 3241, click here.





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ASA’s regional financial services companies work in communities across the country to create jobs, grow the economy, and increase prosperity for all Americans. The ASA exclusively represents the capital market and private client interests of its members and seeks to promote free market principles making it easier to access financial advice and capital. ASA members help Americans save for retirement, provide Main Street businesses with capital to grow, and advise hardworking Americans how to create and preserve wealth. For the latest updates follow @AmerSecurities and learn more at http://americansecurities.org/.

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