Name a Trusted Contact on Investment and Bank Accounts
A trusted contact lets a brokerage call someone you chose if it suspects fraud. What the person can and cannot do, how to add one, and how bank options differ.
A brokerage notices your mother is wiring her savings to a “crypto adviser” she met online. Who can it call? If she named a trusted contact, the answer is someone she chose in advance. If not, the firm may have no one.
A trusted contact is one of the simplest protections an investment account offers, and one of the least used in conversation. It costs nothing, takes a few minutes on a form or website, and gives the firm a person to call when something looks wrong. It is especially worth setting up for older relatives, before any scammer calls.
What a trusted contact can and cannot do
Many people hesitate because they think naming someone hands over control. FINRA’s investor insight on trusted contacts says otherwise: naming one “does not give that person any authority to make decisions about your account” and “does not give that person any authority to learn about your account balance.”
| Role | Can the firm contact them about concerns? | Can they make transactions? | How it is set up |
|---|---|---|---|
| Trusted contact | Yes, about possible exploitation, your contact information, health status or legal representatives | No | A form or online setting at the brokerage |
| Power of attorney (financial) | Yes | Yes, within the document’s terms | A legal document, usually with a lawyer |
| Joint account holder | Yes | Yes, they co-own the account | Opening or changing the account |
| Beneficiary | Not for this purpose | No, inherits on death only | A beneficiary designation form |
The firm’s permission to call comes from FINRA Rule 4512. Since February 5, 2018, broker-dealers must make reasonable efforts to get the name of a trusted contact age 18 or older for non-institutional accounts, and must tell customers in writing that they may contact that person “to address possible financial exploitation, to confirm the specifics of the customer’s current contact information, health status, or the identity of any legal guardian, executor, trustee or holder of a power of attorney.” You can decline to name anyone, and the firm can still open your account.
What happens when a firm is worried
Under FINRA Rule 2165, a firm that reasonably believes a customer age 65 or older, or an adult with a mental or physical impairment, is being financially exploited may place a temporary hold on a disbursement or a securities transaction. The rule requires the firm to notify the trusted contact within two business days, unless that person is unavailable or suspected of being involved.
Up to 15 business days.
Up to 10 more business days.
Up to 30 more business days, for a current maximum of 55.
A hold buys time for a conversation, and the trusted contact is often the person best placed to have it. A parent who will not believe a bank employee may listen to a son or daughter.
A change under review
FINRA has proposed changes to these rules. A notice FINRA filed with the SEC in August 2026 (File No. SR-FINRA-2026-018) would allow firms to use the term “emergency contact,” let one contact cover all of a customer’s accounts at a firm, extend the Rule 2165 maximum hold from 55 to 145 business days, and add a new Rule 2166 allowing a temporary delay of up to 10 business days for customers of any age when a firm reasonably believes fraud is involved. As of our research on November 2, 2026, we found no SEC approval or effective date, so treat these as proposals. The SEC’s notice of the filing has the details.
How to add a trusted contact
- Choose the person. FINRA says they must be 18 or older, and that you can name more than one person and change your choice at any time. Pick someone calm, reachable and not financially dependent on you.
- Ask them first. Explain that the firm might call them, and that they should call you, or the firm on its official number, if they get an odd call claiming to be from your brokerage.
- Add them at each firm. Log in to the brokerage’s website by typing the address, or call the number on your statement, and look for “trusted contact” in your profile or account settings. Each firm is separate, so repeat it for retirement and taxable accounts held elsewhere.
- Keep the details current. Update the contact’s phone and email when they change.
Three situations, and what the trusted contact does
The firm calls you about a large withdrawal. Listen, take notes, and ask what the firm needs from you. You cannot approve or stop the transaction, and you should not need to. Then call your parent, calmly, and ask about the person or opportunity involved. If you suspect a scam, say so to the firm; that information helps it decide whether a hold is justified under Rule 2165.
The firm cannot reach your parent. Rule 4512 lets the firm ask you to confirm current contact details or health status. Give what you know, and nothing about passwords or account numbers, which the firm should not ask a trusted contact for.
Your parent is angry that the firm called you. Remind them that naming you was their choice, that you still cannot see the balance, and that they can change the contact at any time. Most of the value of the arrangement comes from it being agreed in calm times, which is why it belongs on the holiday to-do list rather than in a crisis.
These scenarios are our illustrations of how the rules work, not quotes from FINRA. Each firm’s process differs, so ask yours how it contacts trusted contacts and from which number.
Banks and credit unions
FINRA’s rules cover brokerage firms, not banks. Some banks and credit unions offer a similar option. In 2016 the Consumer Financial Protection Bureau recommended that financial institutions “enable older account holders to consent to information sharing with trusted third parties,” so a designated person can be contacted when the institution reasonably believes the customer may be at risk of financial abuse. Ask the bank directly whether it offers a trusted contact designation and what it allows. Pair it with transaction alerts the account holder controls.
Having the conversation with a parent
Frame it as paperwork everyone should have, like an emergency contact at a doctor’s office, not as a judgment. Some lines that help:
- “I’ve added one to my own account. It means the firm can’t tell me your balance, but it can call me if something looks off.”
- “If someone ever pressures you to move money fast, the firm might pause it and call me. That’s all.”
- “You can change it or remove me any time.”
The schemes that drain retirement accounts often involve investment pitches, impersonated officials or couriers collecting cash; our article on why an investment scam may end with a courier at the door describes one. A family code word is a good companion for the phone side.
Where to get help
FINRA’s Securities Helpline for Seniors is at 844-57-HELPS (844-574-3577), Monday to Friday, 9 a.m. to 5 p.m. Eastern Time. It can answer questions about brokerage accounts and concerns about possible fraud.
Sources
- FINRA: Trusted contact (investor insight)
- FINRA Rule 4512
- FINRA Rule 2165
- SEC notice of filing, SR-FINRA-2026-018 (PDF)
- FINRA Regulatory Notice 26-02 (January 8, 2026)
- FINRA Securities Helpline for Seniors
- CFPB: Recommendations for financial institutions on elder financial exploitation (March 2016, PDF)