DST Positioned to Help Firms Comply with New FINRA Rule to Protect Elderly Investors

Senior and Vulnerable Investor Fraud Surveillance to Help Firms Address the Serious and Growing Problem of Financial Exploitation

KANSAS CITY, MO – FEBRUARY 1, 2018 – DST Systems, Inc. (NYSE: DST), a leading global strategic advisory, technology, and operations outsourcing company, today announced a Senior and Vulnerable Investor Fraud Surveillance module through its Risk and Compliance Intelligence Suite, which can help to identify potential abuse of elderly or other vulnerable investors. Financial firms can use the award-winning product in response to the new FINRA rule taking effect on February 5, 2018, which was recently approved by the SEC to address the frequency of senior and vulnerable investor abuse.

The FINRA changes involve two key steps designed to protect investors. First, financial firms will be required to make reasonable efforts, as defined by FINRA, to obtain the name and information of a trusted contact person for each customer's account. Second, they will be permitted to place a temporary hold on a disbursement of funds and/or securities when there is reasonable belief of financial exploitation.

DST recognized the industry's need to find new ways to help financial firms protect investors and demonstrate successful oversight. DST's Risk and Compliance Intelligence Suite provides SaaS-based and outsourced surveillance tools designed to assist with various compliance and supervisory testing activities across an organization. It can help firms in scaling their compliance programs, optimizing their resource footprint, and driving transparency as needs dictate.

Nick Nichols, DST Vice President of Risk and Compliance Intelligence, said, "For more than 25 years firms have relied on DST to leverage domain, data, and technology expertise that help monitor certain regulatory compliance requirements to protect customers." Nichols continued, "DST's proprietary technology works through a series of tests that trigger alerts when detecting certain unusual or suspicious factors that could indicate financial exploitation and may require further analysis, including web or voice initiated redemptions, or accounts with changes in registration information followed by withdrawals."

It is estimated that financial abuse and fraud cost older Americans $36.5 billion annually, according to the National Council on Aging. Surveillance technology is being deployed in the financial services marketplace to help alert companies and their customers of incidents immediately and prevent future incidents.

About DST
DST Systems, Inc. (NYSE: DST) is a leading provider of specialized technology, strategic advisory, and business operations outsourcing to the financial and healthcare industries. We assist clients in transforming complexity into strategic advantage by providing tools and services to help them stay ahead of and capitalize on ever-changing customer, business, and regulatory requirements in the world's most demanding industries.

Media Contact
Laura M. Parsons
DST Global Public Relations


Subscribe for more info
Want to stay up to date? Subscribe to our communications to access the latest content.


For More Information