This last winter, FINRA introduced the trusted contact rule. It requires that broker-dealer firms make reasonable efforts to identify a “trusted contact,” a person to contact if the firm has a concern that the client is incapacitated or is the target of a scam. It is designed to address the financial exploitation of seniors and vulnerable adults. The trusted contact person is typically a family member but can be anyone so long as they are at least 18 years old. Firms must request this information when a new account is opened or when updates are made to an existing client’s account. However, the client can decline this request as they are not required to provide a trusted contact.

Firms are now faced with yet another set of regulatory challenges and need to have the right tools to ensure compliance with these rules. Many firms lack the technology to capture, track, and report on this information efficiently.



In response to these new regulatory changes, we developed a suite of tools in Pandia, our Software-as-a-Service application, that will assist our customers in managing and tracking trusted contact information. These new features provide Pandia users the ability to create new contacts, update existing contact details, and link information collected across one or more accounts reducing the amount of data entry required. Configurable automated alerts and notifications are also included. For example, an alert can be displayed when an owner is 65 years or older, and the account does not have a trusted contact listed. Additionally, audit reports are available to search for accounts with trusted contact information that is either added, missing, or declined.


These features are a sampling of the many powerful books and records, and compliance management resources that Pandia offers to ensure your firm is in and remains in compliance with these new regulations. Click here to read more about our compliance management offerings or drop us a note if you’d like to schedule a call to learn more about how Terrapin can help your firm.

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