The Financial Industry Regulatory Authority (FINRA) established a toll-free Securities Helpline for Seniors at 1-844-57-HELPS (1-844-574-3577) in late April. Since the launch of the new FINRA hotline, hundreds of seniors have called seeking more information about investment products. Within about four weeks, roughly 350 calls had come in, covering a wide range of investing issues.
The hotline was implemented to help protect seniors from financial abuse. Establishing the hotline has made it easier for older investors across the nation to receive information about investments and issues in a quick and timely manner. It is typically staffed by two or three employees, with more staffers answering calls if the phone lines get busy.
Callers are contacting the hotline inquiring about things like how to compel brokers to give them access to account documents of deceased parents and how to check the regulatory record of a broker. Some investors have called because they did not receive promised rewards for opening an account with a brokerage. Many of the questions and complaints about specific investment products have involved variable annuities, which pay high commissions to brokers and involve steep fees for investors who want to withdraw their money.
High pressure sales tactics from brokerages has also been reported to the hotline, with many investors complaining about brokers pressuring clients to invest in something without providing enough information. Calls to the hotline have also included reports of broker misconduct and delays in getting problems at brokerages resolved. Particularly troubling calls are referred to other departments within FINRA for follow-up investigations.
In one notable case, a victim of wire fraud was having trouble getting the securities firm to reimburse her for funds withdrawn from her account without her authorization, a matter that firms are ultimately responsible for. After contacting the hotline, FINRA was able to resolve the issue for her. In another case, a broker borrowed tens of thousands of dollars from an older client and neglected to pay it back. After FINRA made contact with the broker’s firm, the firm repaid the client. At least one broker reported on the hotline has been placed in FINRA’s high-risk broker program, which expedites disciplinary action against brokers with numerous complaints and questionable business practices.