House passes Financial Exploitation Prevention Act

The U.S. House of Representatives passed the Financial Exploitation Prevention Act this week.

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The bill ((HR 2265), sponsored by U.S. Rep Ann Wagner (R-MO), would give the financial industry better tools to address the exploitation and abuse of seniors and those with mental and physical disabilities.

“Financial exploitation of seniors and other vulnerable adults is a serious and growing problem,” Wagner, vice ranking member of the House Financial Services Committee, said. “As more investors age into retirement, the risk of financial exploitation for elderly households only increases. I thank my colleagues for supporting my legislation that will provide our potentially 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. The Financial Exploitation Prevention Act is needed to provide certainty to protect our seniors, and I hope the Senate takes swift action to pass this important legislation.”

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.

Also, it permits a registered investment company or transfer agent for that company, including mutual funds, to better protect seniors by delaying the redemption period of any security if it was requested through the financial exploitation of a security holder who is a senior or an individual unable to protect their own interests.