U.S. House Passes Financial Exploitation Prevention Act
Last updated 3/2/2023 at 6:52pm | View PDF
Seniors are expected to make up 18% of the nation’s population by 2030. As more investors age into retirement, their risk of exploitation increases.
In response, the U.S. House of Representatives passed the Financial Exploitation Prevention Act.
“Financial exploitation of seniors is elder abuse and, tragically, about 20% of senior investors fall prey to financial fraud, losing an estimated $2.9 billion annually," said Congresswoman Ann Wagner (R-MO), chair of the Financial Services Subcommittee on Capital Markets and the bill's sponsor.
The Financial Exploitation Prevention Act would give the financial industry better tools to address suspected financial exploitation and abuse of seniors and those with mental and physical disabilities.
First, the bill requires the Securities and Exchange Commission to report to Congress on recommendations for legislative and regulatory changes on how to combat financial exploitation of seniors and vulnerable adults.
Second, the bill permits a registered open-end investment company or transfer agent for that company, including mutual funds, to better protect seniors by delaying the redemption period of any redeemable security if it was reasonably believed that such redemption was requested through the financial exploitation of a security holder who is a senior or an individual unable to protect their own interests.
The bill is currently in the hands of the U.S. Senate.