The U.S. House of Representatives has voted to approve a bill that will hopefully encourage financial advisers to help stop senior financial fraud. The Senior Safe Act protects financial advisers and their firms from liability for violating privacy laws when they report suspicions or evidence of elder financial abuse.<\/p>\n
The bi-partisan legislation, unanimously approved by house members, seeks to help financial institutions and their employees identify when a person may be the victim of exploitation. It also gives them the ability to report their suspicions without fear of liability. However, specialized training to help advisors identify and report such incidents would be required in order for immunity from liability to go into effect. <\/p>\n
Also this month, laws were put in place in Indiana, Alabama, and Vermont mandating that financial advisers notify state authorities when they suspect that an elderly person or another vulnerable adult may be the victim of financial abuse. The new legislation lets advisers put a freeze on fund disbursements from a client\u2019s accounts. It also gives them immunity from liability for reporting their suspicions. <\/p>\n
Meantime, the Securities and Exchange Commission and the Financial Industry Regulatory Authority remain committed to their battle against elder abuse. FINRA has proposed a rule that, while it doesn\u2019t mandate reporting of senior abuse, allows advisers to name a third party that could be notified if they suspect that a client is the victim of elder financial abuse. Also, in January, the North American Securities Administrators Association unveiled its NASAA Model Act to Protect Vulnerable Adults from Financial Exploitation. <\/p>\n