CFG CFG Elder Financial Exploitation & Consumer Protection

Question 1

Which federal agency is primarily responsible for protecting consumers, including older adults, from financial fraud and unfair financial practices?

Accepted Answer

The Consumer Financial Protection Bureau (CFPB)

Answer

The CFPB has specific programs focused on protecting older consumers from financial exploitation, including the Office for Older Americans.

Question 2

What is 'elder financial exploitation' (EFE)?

Accepted Answer

The illegal or improper use of an older adult's funds, property, or assets by another person

Answer

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.

Question 3

Which of the following is a common warning sign that an older adult may be a victim of financial exploitation?

Accepted Answer

Unexplained withdrawals, sudden changes to beneficiary designations, or a new 'friend' managing finances

Answer

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.

Question 4

What is a 'trusted contact person' designation, and which regulatory body requires broker-dealers to make reasonable efforts to obtain one?

Accepted 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

Answer

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.

Question 5

Which federal law gives FINRA member firms the ability to temporarily hold disbursements from accounts of seniors when financial exploitation is suspected?

Accepted Answer

FINRA Rule 2165 under SEC Rule 17a-3

Answer

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.

(CFG) Certified Financial Gerontologist Practice Test

(CFG) Certified Financial Gerontologist Practice Test

CFG CFG Elder Financial Exploitation & Consumer Protection