In the second part of our post looking at proposed changes to securities regulations to enhance protections of older adults and vulnerable clients we’ll cover the proposed amendment to give registrants the ability to place temporary holds.
Nova Scotia’s population is aging. The percentage of older adults making up the province’s population has never been higher. In order to best protect vulnerable investors from financial exploitation securities regulators have recognized that registrants need tools and guidance they can use to take action when the believe financial abuse is taking place. To address this, securities regulators have recognized this and proposed allowing temporary holds as a protection.A registrant or registered firm will be allowed to place a temporary hold on the purchase or sale of securities or the withdrawal or transfer of cash or securities from a client’s account if they believe that:
- a vulnerable client is being financially exploited, or
- with respect to an instruction given by the client, the client does not have the mental capacity to make financial decisions.
The registrant or firm will be required to take certain prescribed steps if they place a temporary hold on a client’s account.
To protect older adults and vulnerable clients, securities regulators must try to find a balance between adequate protection while also making sure the new protections are not exploited by the registrants and firms that have been given these new protective powers.
If you have comments or suggestions regarding these new proposed amendments, or want more information, please review the CSA Notice on our website.