Financial Industry Regulatory Authority (FINRA) Practice Exam 2026 - Free FINRA Practice Questions and Study Guide

In situations where a member firm suspects financial exploitation of a senior customer, contacting a trusted contact person and temporarily holding disbursements is a prudent and appropriate action to take. This approach aligns with regulatory guidelines that allow firms to act in the best interest of their senior clients while also fulfilling their duty to protect vulnerable populations.

By reaching out to a trusted contact person, the firm can gather additional information or insight regarding the situation without compromising the customer's relationship with their financial assets. This trusted contact could be a family member, friend, or advisor who is familiar with the client's circumstances and can help assess the validity of the suspicions regarding exploitation.

Furthermore, temporarily holding disbursements helps prevent potential further harm to the senior customer's finances. This action allows the firm to investigate the circumstances more thoroughly and ensures that any potentially fraudulent or inappropriate activities are halted while the necessary checks are conducted. This protective measure is crucial for seniors, as they may be at a higher risk of financial exploitation due to various factors, including cognitive decline or increased reliance on others.

Other options may not be appropriate. For instance, notifying the SEC and freezing all accounts immediately might be too drastic without a full understanding of the situation, potentially leading to unnecessary disruption. Contacting anyone who knows the