Who Is Your Trusted Contact?


Provided by Christina Bush, CES, CAS, CMFC
Wealth Manager/Certified Estate and Trust Specialist

Investment firms have a new client service requirement. They must now ask you if you want to provide the name and information of a trusted contact.1

You do not have to supply this information, but it is certainly welcomed. The request is being made, with your best interest in mind, to lower the risk that someone crooked might someday make investment decisions on your behalf.1

Financial scams rob U.S. seniors of more than $36 billion per year. As a CNBC article notes, 27% of these frauds represent abuse or exploitation committed by third parties; 23% are wrongdoings committed by family members or trustees.1

The trusted contact request is a response to this reality. The Financial Industry Regulatory Authority (FINRA) now demands that investment firms “make reasonable efforts” to acquire the name and contact info of a “trusted person,” who they can get in touch with if they feel fraud or financial exploitation is occurring or if they suspect the investor is suffering notable cognitive decline.2

Investment firms may now put a hold on disbursements of cash or securities from accounts if they suspect the withdrawals or transactions amount to financial exploitation. In such circumstances, they are asked to get in touch with the investor, the trusted contact, and adult protective services agencies or law enforcement agencies if necessary.2

Who should your trusted contact be? At first thought, the answer seems obvious: the person you trust the most. Yes, that individual is probably the best choice – but keep some factors in mind.

Ideally, your trusted contact is financially savvy, or at least financially literate. You may trust your spouse, your sibling, or one of your children more than you trust anyone else; how much does that person know about investing and financial matters?

The trusted contact should behave ethically and respect your privacy. This person could be given confidential information about your investments. Is there any chance that, in receipt of such information, they might behave in an unprincipled way?

Your family members should know who the trusted contact is. That way, any family member who might be tempted to take financial advantage of you knows another family member is looking out for you, which may be an effective deterrent to elder financial abuse. The trusted contact can optionally be an attorney, a financial advisor, or a CPA.1

Your trusted contact is your ally. If you are being exploited financially, or seem at risk of such exploitation, that person will be alerted and called to action.

An old saying states that money never builds character, it only reveals it. The character and morality of your trusted contact should not waver upon assuming this responsibility. If given sensitive information about your brokerage accounts, that person should not sense an opportunity.

Now is the perfect time to name your trusted contact. You want to make this decision while you are still of sound body and mind. Choose your contact wisely.

This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. All information is believed to be from reliable sources; however we make no representation as to its completeness or accuracy. Please note - investing involves risk, and past performance is no guarantee of future results. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment.

Citations: 1 - cnbc.com/2018/05/15/advisors-are-asking-their-clients-for-a-trusted-contact-choose-wisely.html [5/15/18]
2 - finra.org/newsroom/2018/new-finra-rules-take-effect-protect-seniors-financial-exploitation [2/5/18]

CB Wealth Advisory - Private Wealth Management

_________________________________________

DISCLOSURE:

Securities offered through Securities America, Inc., Member FINRA.org and SIPC.org; Christina Bush, Registered Representative. Advisory services offered through Cooper McManus, an SEC Registered Investment Advisory firm; Christina Bush, Investment Advisor Representative. CB Wealth Advisory, Securities America and Cooper McManus are separate entities.

This site is published for residents of the United States and is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any security or product that may be referenced herein. Persons mentioned on this website may only offer services and transact business and/or respond to inquiries in states or jurisdictions in which they have been properly registered or are exempt from registration. Not all products and services referenced on this site are available in every state, jurisdiction or from every person listed. Third party posts found on this profile do not reflect the views of Securities America and have not been reviewed by Securities America as to accuracy or completeness.

Christina Bush, licensed insurance agent: CA Insurance license #0B48734 - FL Insurance license #W050514 - NC Insurance license #2620839 - WA Insurance license # 787335

FINRA BROKER CHECK FINRA.org

A prospectus offer is required by SEC Rule 482(b)(1) that advises an investor to consider the investment objectives, risks and charges and expenses of an investment company carefully before investing; explains that the prospectus, and, if available, the summary prospectus contains this and other information about the investment company; identifies a source from which an investor may obtain a prospectus and, if available, a summary prospectus; and states that the prospectus and, if available, the summary prospectus should be read carefully before investing.

IMPORTANT CONSUMER INFORMATION
A broker/dealer (BD), investment adviser (IA), or IA representative may only transact business in a state if first registered, or is excluded or exempt from state broker/dealer, investment adviser, BD agent, or IA registration requirements, as appropriate. Follow-up, individualized responses to persons in a state by such a firm or individual that involve either effecting or attempting to effect transactions in securities, or the rendering of personalized investment advice for compensation, will not be made without first complying with appropriate registration requirements, or an applicable exemption or exclusion.

For information concerning the licensing status or disciplinary history of a BD, IA, BD agent, or IA rep, a consumer should contact his or her state securities law administrator.

Securities in accounts are carried by National Financial Services, LLC, member NYSE/SIPC, a Fidelity Investment Company, which is protected by the Securities Investor Protection Corporation (SIPC) up to $500,000 (including cash claims limited to $100,000). NFS has arranged for additional insurance protection for cash and securities to supplement its' SIPC coverage. This additional protection covers total account net equity in excess of the $500,000/coverage provided by SIPC. This protection does not cover losses associated with investing.

For detailed information about SIPC, please visit SIPC.org.

All Photos By Christina Bush

Copyright 2019 by Christina Bush/CB Wealth Advisory
PRIVATE WEALTH MANAGEMENT