Trusted Contacts:
Frequently Asked Questions

What is a trusted contact?

A trusted contact person is someone you authorize your brokerage firm, bank, or credit union to reach out to in limited circumstances — much like an emergency contact at a doctor's office.

Securities regulators describe it as a person the firm may contact if it cannot reach you, or if it has a reasonable belief that your account may be exposed to financial exploitation.

Naming a trusted contact gives that person no authority over your money. They cannot trade, withdraw, view balances, or make any decision about your account.

The designation is optional, you may name more than one person, and you can change or remove it at any time.

Why do I need a trusted contact?

Because a financial firm that spots something wrong on your account may have no lawful way to act on it. Without a trusted contact, a firm that cannot reach you — or that sees a transfer badly out of character — is often left guessing. Privacy rules limit who it can call.

The designation also unlocks a specific protection. Under FINRA Rule 2165, a brokerage firm that reasonably suspects financial exploitation of an eligible customer may place a temporary hold on a disbursement or transaction, and must attempt to notify the trusted contact.

That pause can be the difference between a wire that is stopped and one that is gone.

What does a trusted contact do?

Very little, until something goes wrong — which is the point. If your firm has a concern, it may ask your trusted contact to confirm your current contact information, speak to your health status, identify anyone holding a power of attorney or serving as your legal guardian, executor, or trustee, or help the firm address suspected financial exploitation.

What a trusted contact does not do is equally important. The role confers no power of attorney, no guardianship, no trusteeship, and no ability to move a dollar.

Your trusted contact answers questions; they do not take actions.

Who needs a trusted contact?

Everyone with an investment account, according to both FINRA and the SEC's Office of Investor Education and Advocacy. FINRA states plainly that having a trusted contact “is recommended for all investors, regardless of age.”

A car accident, a hospitalization, a hurricane, or a stretch out of cell range can make anyone unreachable at exactly the wrong moment.

That said, the risk is not evenly spread. In 2025, people aged 60 and over filed 201,266 complaints with the FBI's Internet Crime Complaint Center, reporting $7.748 billion in losses — more than any other age group, and a 59% increase over the prior year.