October 21, 2016 News

Jason Gottlieb Quoted on Proposed Finra Rule to Prevent Elder Financial Abuse

October 21, 2016 – Morrison Cohen Partner Jason Gottlieb was quoted on Finra’s proposed rule filed with the Securities and Exchange Commission that would allow brokers to report suspected financial exploitation of seniors and other vulnerable investors. The SEC must approve the rule before it can go into effect. The article, “Finra Proposes Rule to Prevent Elder Financial Abuse”, appeared in InvestmentNews on October 20, 2016:

Although compliance experts praised the goal of the Finra rule, they worry about how it would work in practice.

Jason Gottlieb, partner at Morrison Cohen, said brokers are not medical and psychology experts, yet they would have to determine whether a client is being exploited.

“I'm concerned about potential liability and exposure to lawsuits or Finra arbitration if the financial institutions don't make the right call,” Mr. Gottlieb said. “The safe harbors may not be sufficient. It puts firms in a difficult position.”