Your Trusted ContactsSubmitted by Karstens Investments on February 6th, 2018
By Deborah Kavan
What should your advisor do if he needs to contact you and you are unavailable? What if we have concerns about your accounts and you are out of the country or in the hospital for example? Alternately, what if we have concerns about your health and your ability to make decisions?
To assist in addressing issues like these, the SEC last year ap- proved an amendment to the Customer Account Information Rule and created the new Financial Exploitation of Specified Adults rule, both of which will take effect on February 5th.
Account custodians such as TD Ameritrade and Charles Schwab & Co., as well as Karstens Investment Counsel, Inc. as your investment advisor, are now required to encourage clients to list a Trusted Contact. At the bottom of this post, you will find a copy of our Emergency Trusted Contact Authorization. Although you are not required to complete this form, we do feel that it is another level of protection between your accounts and attempts at fraud or exploitation.
Clients should think of their Trusted Contact as a non-household, emergency contact. Spouses should avoid listing each other as their Trusted Contact, but should instead decide together whom they would like to list. Ask yourselves, “If something happens to us or if our advisor has a concern, whether it be a medical condition or financial exploitation – who do we trust to act on our behalf?” Consider listing an adult child, a sibling, a close personal friend, or your attorney.
Please return completed forms to our office via email, fax, or mail. If you have any questions regarding the new requirements, our form, or listing a trusted contact, please contact your advisor or Deborah Kavan, Chief Compliance Officer.