FINRA Rule 2165 Financial Exploitation Temporary Hold Duration
When a member firm places a temporary hold on the disbursement of funds from a senior customer's account due to reasonable belief of financial exploitation, what is the initial maximum hold period permitted under FINRA Rule 2165?
FINRA Rule 2165 permits an initial temporary hold of up to 15 BUSINESS DAYS on disbursements of funds or securities. If the firm's internal investigation supports continued suspicion, the hold may be extended by up to 10 additional business days.
Complete Analysis & Legal Rationale
The firm must notify all authorized parties and the Trusted Contact Person within 2 business days of placing the hold.
Distractor Autopsy (Why Other Options Are Traps)
FINRA exam writers design incorrect distractors using specific calculation mistakes and regulatory misconceptions. Review why each option succeeds or fails:
15 business days initial hold, extendable by 10 business days.
90 days is the Reg T cash account freeze for free riding.
2 business days is the deadline to NOTIFY parties, not the duration of the hold.
Permanent holds require a court injunction.