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

When a member firm suspects that financial exploitation has occurred, it is crucial to reach out to the designated trusted contact. This trusted contact person is typically someone designated by the customer to act on their behalf in situations where fraud or exploitation is suspected. The role of this individual is to facilitate communication and ensure the welfare of the customer, particularly if they may be vulnerable.

By contacting the trusted contact, the firm can gather more information about the situation, confirm whether financial exploitation has taken place, and discuss potential protective measures. This process is vital in taking appropriate steps to safeguard the customer's assets and well-being.

Other actions like contacting the SEC or placing holds on transactions may be relevant in certain contexts but are not primary requirements when financial exploitation is suspected. No action being required fails to safeguard customers, particularly when signs of exploitation are evident, making outreach to the trusted contact a necessary and proactive response.