The Financial Exploitation Prevention Act recently passed in the U.S. House of Representatives.
This bill, H.R. 2478, would procedures for delaying the redemption of certain securities if an investment company or agent believes that an older individual or an individual with certain impairments has been financially exploited.
The company may initially delay the redemption for up to 15 days and has the option to delay the redemption an additional 10 days.
“Far too often, senior citizens here in Missouri and all across the nation are directly targeted for financial fraud. The consequences of this crime extend to millions of Americans, with one out of every five senior investors falling victim to financial fraud and exploitation. This problem is only getting worse, so I got to work with my colleagues on both sides of the aisle to craft simple protections for seniors who need it most,” U.S. Rep. Ann Wagner (R-MO), the bill’s sponsor, said.
Wagner said her bill gives financial institutions the tools to step in when they suspect a vulnerable adult is being exploited. It also gives law enforcement time to act before someone’s retirement is permanently stolen by fraudsters.
“Many seniors and vulnerable adults need that extra layer of defense from fraud that has become tragically common in today’s world, and my Financial Exploitation Prevention Act is a commonsense step to protecting parents, grandparents, and families in communities around our country,” Wagner said.
The bill was co-sponsored by Rep. Josh Gottheimer (D-NJ). The passage of the bill drew support from the Investment Company Institute (ICI).
“We applaud the House passage of the bipartisan Financial Exploitation Prevention Act and the leadership of Representatives Wagner and Gottheimer. One in five Americans over the age of 65 has been a victim of financial exploitation, experiencing estimated losses of $2.9 billion. The bill would give our industry better tools to address suspected financial exploitation and abuse of seniors and those with disabilities. ICI urges the Senate to pass this bill without delay so seniors and other vulnerable investors can benefit from a greater level of protection,” ICI President and CEO Eric Pan said.