CFG Elder Financial Exploitation & Consumer Protection Flashcards
6 cards from real CFG practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 CFG Elder Financial Exploitation & Consumer Protection flashcards as text
Which federal agency is primarily responsible for protecting consumers, including older adults, from financial fraud and unfair financial practices?
Answer: The Consumer Financial Protection Bureau (CFPB)
The CFPB has specific programs focused on protecting older consumers from financial exploitation, including the Office for Older Americans.
What is 'elder financial exploitation' (EFE)?
Answer: The illegal or improper use of an older adult's funds, property, or assets by another person
Elder financial exploitation involves the illegal, unauthorized, or improper use of an older adult's resources by a trusted person, caregiver, family member, or stranger for personal gain.
Which of the following is a common warning sign that an older adult may be a victim of financial exploitation?
Answer: Unexplained withdrawals, sudden changes to beneficiary designations, or a new 'friend' managing finances
Sudden unexplained financial changes such as large withdrawals, altered beneficiaries, unpaid bills, and the appearance of a new financial influencer are classic red flags of elder financial exploitation.
What is a 'trusted contact person' designation, and which regulatory body requires broker-dealers to make reasonable efforts to obtain one?
Answer: A person a financial firm can contact if there are concerns about a client's well-being or financial exploitation; required by FINRA Rule 4512
Under FINRA Rule 4512, broker-dealers must make reasonable efforts to obtain the name of a trusted contact person who can be reached if the firm has concerns about a client's health, safety, or possible financial exploitation.
Which federal law gives FINRA member firms the ability to temporarily hold disbursements from accounts of seniors when financial exploitation is suspected?
Answer: FINRA Rule 2165 under SEC Rule 17a-3
FINRA Rule 2165 permits broker-dealers to place a temporary hold on disbursements of funds or securities when there is a reasonable belief that financial exploitation of a senior investor has occurred or is being attempted.
The Senior Safe Act of 2018 provides what protection to financial professionals who report suspected elder financial exploitation?
Answer: Protection from civil and administrative liability for good-faith reports of suspected exploitation to covered agencies
The Senior Safe Act grants immunity from civil and administrative liability to financial institutions and their employees who, after receiving training, make good-faith reports of suspected elder financial exploitation to covered agencies.