FINRA Files Fraud Delay Rule Proposal for Customer Accounts

FINRA filed SR-FINRA-2026-018 with the Securities and Exchange Commission, proposing changes to customer-account and temporary-delay rules tied to suspected fraud.

The filing would amend FINRA Rules 0150, 2165 and 4512 and add new FINRA Rule 2166. FINRA describes the proposal as a modernization of protections for senior and vulnerable investors, while also making additional fraud-prevention tools available for all customers. The proposed new Rule 2166 would cover temporary delays for suspected fraud.

The filing matters for broker-dealers because temporary holds and trusted-contact workflows sit directly inside account servicing, supervision and customer communications. If adopted, firms would need to align policies, surveillance triggers, escalation records and customer notices with the final rule text and SEC approval order.

Why it matters

For active traders, account restrictions can be disruptive even when they are intended to stop fraud. Clearer rules around temporary delays can help firms respond to suspected scams, account takeovers or coerced transfers while giving customers a more predictable framework for when activity may be paused.

For brokers, the proposal points to continued regulatory pressure to document fraud prevention without turning every unusual request into an open-ended account freeze.

What to watch next

Watch the SEC comment process, any changes between the filed proposal and final approval, and how firms update account agreements, trusted-contact procedures and front-line escalation playbooks if the rule is approved.