U.S. Rep. Ann Wagner (R-MO) is commending House of Representatives colleagues for advancing her Financial Exploitation Prevention Act (H.R. 500), which offers protection for at-risk senior investors.
“The Financial Exploitation Prevention Act will provide our vulnerable investors with an important layer of protection to help make sure that they receive the hard-earned savings that they have built up over the years,” said Wagner, chair of the Financial Services Subcommittee on Capital Markets. “Financial exploitation of seniors is elder abuse and, tragically, about 20 percent of senior investors fall prey to financial fraud, losing an estimated $2.9 billion annually.”
Wagner indicated she is hopeful the Senate would immediately address the bill to provide senior investors the protection they deserve.
Per the legislation, the Securities and Exchange Commission would be required to report to Congress on recommendations for legislative and regulatory changes regarding combating the financial exploitation of seniors and vulnerable adults.
The legislation would also permit a registered open-end investment company or transfer agent for that company 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 senior security holder or an individual unable to protect their own interests.
Currently, 20 percent of senior investors are victimized by financial fraud, losing an estimated $2.9 billion annually in reported cases.