Legislation recently introduced in the U.S. House of Representatives would provide better financial industry tools to address suspected financial exploitation and abuse of seniors and those with mental and physical disabilities.
The Financial Exploitation Prevention Act would require the Securities and Exchange Commission to provide Congress with recommendations for legislative and regulatory changes to combat the financial exploitation of seniors and vulnerable adults.
The bill also would permit a registered open-end investment company or a company’s transfer agent to protect seniors by delaying the redemption period of any redeemable security if it is reasonably believed that such redemption was requested through the financial exploitation.
“We are facing a growing crisis that is often hidden in plain sight: the financial exploitation of our most vulnerable citizens,” U.S. Rep. Ann Wagner (R-MO), who introduced the bill, said. “This issue affects millions, robbing them of their life savings and sense of security. For too long, the financial industry has been limited in its ability to combat this insidious crime.”
Annually, Americans aged 60 and older lose an estimated $28.3 billion due to financial exploitation, according to a 2023 AARP report. By 2030, people aged 65 and over will be 18 percent of the U.S. population.
Wagner is House Financial Services Subcommittee on Capital Markets chairwoman.