New York Securities Fraud Lawyers Blog
As elder financial exploitation, or EFE, has become increasingly prevalent with scams and fraud in recent years, it is even more important for state and federal regulators, like the Financial Industry Regulatory Authority (FINRA), to help protect senior investors who may be at particular risk of becoming victims of EFE.
Pre-Existing FINRA Rules for Elder Financial Exploitation
FINRA’s Senior Exploitation Rules have been enacted to provide broker-dealers and their firms with the tools to protect senior investors over 65 years old. For example, Rule 4512 (enacted in 2019) requires firms to make reasonable efforts to get the contact information of a senior investor’s Trusted Contact Person when unusual activity is suspected in their account. Similarly, Rule 2165 (enacted in 2022) allows firms to place a temporary hold on disbursements of funds or securities from a senior’s account when the firm suspects financial exploitation.
These rules have provided helpful tools for senior investors, but the arbitration process had remained somewhat slow given the senior statutes. In January 2026, FINRA Dispute Resolution requested comment on revisions to the Expedited Arbitration Rules for senior and vulnerable investors to improve the process and to better protect senior investors from EFE.
New FINRA Rules for Accelerated Processing
On March 30, 2026, FINRA Regulatory Notice 25-18 adopted new rules that further expedited the arbitration process for those who are over the age of 70 or can certify that they have a serious health condition which would suggest that expedited proceedings are necessary to prevent prejudicing their interest in arbitration. Rule 12808 applies to customer disputes, and Rule 13808 applies to industry disputes.
If a party’s case qualifies under either of these rules, their path to an arbitration award could accelerate significantly. Arbitrator selection is shortened from “within approximately 30 days after the last answer is due” to “as soon as practicable,” and the deadlines for document production, responses, and answers are cut in half from 60 days to 30-35 days. This means that FINRA could render awards within 10 months of a party qualifying for this process compared to the typical 16 or more months of a non-qualifying arbitration. These defined deadlines provide further clarity to broker-dealer firms and arbitrators on how quickly arbitrations should be done under the expedited process. FINRA’s Guide to Expedited Proceedings gives further detailed information.
Accelerated Processing in Practice
While these rules have only been in effect for 4 months, qualifying investors can expect to see quicker arbitration proceedings within the next few months as cases reach the 10-month mark. In June, FINRA awarded $2.7 million after 15 months from the filing date to an elderly woman who fell victim to a Ponzi scheme out of California. Under the old expedited rules at FINRA, this case should have been done in 12 months, so only time will tell whether arbitrators hold the parties responsible to complete the arbitration in the required timeline.
What This Means for Senior Investors
FINRA’s accelerated arbitration timeline (if enforced) could be invaluable to senior investors and those with serious health conditions who cannot afford to wait extended periods of time for an award. These expanded protections against elder financial exploitation also demonstrate FINRA’s commitment to ensuring a fair, safe, and regulated investor market for all, including members of vulnerable populations.
What to Do if You Are a Victim of EFE
If you or someone you know suspects that they have been the victim of elder financial exploitation, it is important to contact a reputable securities law firm, like Malecki Law, as soon as possible to see if you might qualify for these new expedited proceedings.