CFG CFG Elder Financial Exploitation & Consumer Protection

Question 1

Which federal agency is primarily responsible for protecting consumers, including older adults, from financial fraud and unfair financial practices?

Accepted Answer

The Consumer Financial Protection Bureau (CFPB)

Answer

The Securities and Exchange Commission (SEC)

Answer

The Federal Trade Commission (FTC)

Answer

The Financial Industry Regulatory Authority (FINRA)

Question 2

What is 'elder financial exploitation' (EFE)?

Accepted Answer

The illegal or improper use of an older adult's funds, property, or assets by another person

Answer

The process of a senior voluntarily gifting assets to family members

Answer

A legal financial planning strategy that reduces an elder's taxable estate

Answer

Investment losses suffered by seniors due to market volatility

Question 3

Which of the following is a common warning sign that an older adult may be a victim of financial exploitation?

Accepted Answer

Unexplained withdrawals, sudden changes to beneficiary designations, or a new 'friend' managing finances

Answer

Opening a new bank account independently

Answer

Increasing charitable contributions to established organizations

Answer

Paying off a mortgage early using retirement savings

Question 4

What is a 'trusted contact person' designation, and which regulatory body requires broker-dealers to make reasonable efforts to obtain one?

Accepted Answer

A person a financial firm can contact if there are concerns about a client's well-being or financial exploitation; required by FINRA Rule 4512

Answer

A legally appointed power of attorney; required by the SEC

Answer

An emergency contact for medical decisions; required by CMS

Answer

A co-signer on all investment accounts; required by FINRA Rule 2111

Question 5

Which federal law gives FINRA member firms the ability to temporarily hold disbursements from accounts of seniors when financial exploitation is suspected?

Accepted Answer

FINRA Rule 2165 under SEC Rule 17a-3

Answer

The Elder Justice Act

Answer

The Senior Safe Act

Answer

The Adult Protective Services Act

Question 6

The Senior Safe Act of 2018 provides what protection to financial professionals who report suspected elder financial exploitation?

Accepted Answer

Protection from civil and administrative liability for good-faith reports of suspected exploitation to covered agencies

Answer

Criminal immunity from any prosecution related to client accounts

Answer

A federal grant to train staff in detecting exploitation

Answer

Tax deductions for elder financial counseling services