Secretary of State Jay Ashcroft’s Securities Division has announced that Missouri is the first state to adopt rules requiring investment advisor representatives to ask their customers if they have a trusted contact.

A news release says a trusted contact, as defined by the Financial Industry Regulatory Authority (FINRA), is the person you authorize your financial advisor or firm to contact in limited circumstances when you’re unreachable. It may be a family member, attorney or other trusted third party.

“No one is required to have a trusted contact, but this measure helps educate the public about why identifying a trusted contact is likely to be in the investor’s best interest,” Ashcroft said.

FINRA emphasizes adding trusted contacts to your account can provide an extra level of security to your account, and puts your advisor or firm in a better position to keep your account safe.

Naming a trusted contact does not provide that person authority to make transactions, including trades and other decisions to your account and does not make that person a power of attorney.

You can learn more about trusted contacts on MissouriProtectsInvestors.com or contact the Investor Protection Hotline at 1 (800) 721-7996.