Financial Exploitation Prevention Act of 2023

10/10/2024, 9:41 PM

Financial Exploitation Prevention Act of 2023

This bill addresses the redemption of securities involving the potential financial exploitation of an adult by allowing an open-end investment company to elect to comply with certain procedures. (Open-end investment management companies offer securities in pooled investment vehicles such as mutual funds.)

Specifically, the bill allows for the delay of the redemption of a security issued by an open-end investment management company if the company reasonably believes the redemption involves the financial exploitation of an individual age 65 or older or an individual age 18 or older who is unable to protect his or her own interests.

The company may initially delay the redemption for up to 15 days and, upon making a determination of exploitation, may delay the redemption an additional 10 days. In the event of delay, the company must hold the amounts related to the redemption in a demand deposit account.

Additionally, the Securities and Exchange Commission must make legislative and regulatory recommendations to address the financial exploitation of these adults.

Bill 118 s 1481, also known as the Financial Exploitation Prevention Act of 2023, aims to protect vulnerable adults from financial exploitation. The bill was introduced in the US Congress with the goal of preventing individuals from taking advantage of older adults or individuals with disabilities for financial gain.

The key provisions of the bill include establishing a national registry of individuals who have been convicted of financial exploitation of vulnerable adults. This registry would serve as a tool for financial institutions and other organizations to screen potential employees or volunteers who may have a history of exploiting vulnerable adults.

Additionally, the bill requires financial institutions to report suspected cases of financial exploitation of vulnerable adults to the appropriate authorities. This reporting requirement is intended to help law enforcement agencies investigate and prosecute individuals who are exploiting vulnerable adults for financial gain. Furthermore, the bill provides funding for education and training programs for financial institutions, caregivers, and other individuals who may come into contact with vulnerable adults. These programs are designed to raise awareness about the signs of financial exploitation and provide individuals with the tools they need to prevent and report suspected cases. Overall, the Financial Exploitation Prevention Act of 2023 is a comprehensive piece of legislation aimed at protecting vulnerable adults from financial exploitation. By establishing a national registry, requiring reporting of suspected cases, and providing education and training programs, the bill seeks to prevent individuals from taking advantage of vulnerable adults for financial gain.
Congress
118

Number
S - 1481

Introduced on
2023-05-09

# Amendments
0

Sponsors
+5

Cosponsors
+5

Variations and Revisions

5/9/2023

Status of Legislation

Bill Introduced
Introduced to House
House to Vote
Introduced to Senate
Senate to Vote

Purpose and Summary

Financial Exploitation Prevention Act of 2023

This bill addresses the redemption of securities involving the potential financial exploitation of an adult by allowing an open-end investment company to elect to comply with certain procedures. (Open-end investment management companies offer securities in pooled investment vehicles such as mutual funds.)

Specifically, the bill allows for the delay of the redemption of a security issued by an open-end investment management company if the company reasonably believes the redemption involves the financial exploitation of an individual age 65 or older or an individual age 18 or older who is unable to protect his or her own interests.

The company may initially delay the redemption for up to 15 days and, upon making a determination of exploitation, may delay the redemption an additional 10 days. In the event of delay, the company must hold the amounts related to the redemption in a demand deposit account.

Additionally, the Securities and Exchange Commission must make legislative and regulatory recommendations to address the financial exploitation of these adults.

Bill 118 s 1481, also known as the Financial Exploitation Prevention Act of 2023, aims to protect vulnerable adults from financial exploitation. The bill was introduced in the US Congress with the goal of preventing individuals from taking advantage of older adults or individuals with disabilities for financial gain.

The key provisions of the bill include establishing a national registry of individuals who have been convicted of financial exploitation of vulnerable adults. This registry would serve as a tool for financial institutions and other organizations to screen potential employees or volunteers who may have a history of exploiting vulnerable adults.

Additionally, the bill requires financial institutions to report suspected cases of financial exploitation of vulnerable adults to the appropriate authorities. This reporting requirement is intended to help law enforcement agencies investigate and prosecute individuals who are exploiting vulnerable adults for financial gain. Furthermore, the bill provides funding for education and training programs for financial institutions, caregivers, and other individuals who may come into contact with vulnerable adults. These programs are designed to raise awareness about the signs of financial exploitation and provide individuals with the tools they need to prevent and report suspected cases. Overall, the Financial Exploitation Prevention Act of 2023 is a comprehensive piece of legislation aimed at protecting vulnerable adults from financial exploitation. By establishing a national registry, requiring reporting of suspected cases, and providing education and training programs, the bill seeks to prevent individuals from taking advantage of vulnerable adults for financial gain.
Alternative Names
Official Title as IntroducedA bill to amend the Investment Company Act of 1940 to postpone the date of payment or satisfaction upon redemption of certain securities in the case of the financial exploitation of specified adults, and for other purposes.

Policy Areas
Finance and Financial Sector

Potential Impact
Administrative law and regulatory procedures•
Congressional oversight•
Crime victims•
Fraud offenses and financial crimes•
Government information and archives•
Government studies and investigations•
Securities•
Securities and Exchange Commission (SEC)•
White-collar crime

Comments

APPROVED
Mathias Morrison
@zaatar_jalapeno_amaranth14238
This bill is a disaster for young adults like me in FL. It will only make it harder for us to manage our finances and make our own decisions. #NoToS1481

APPROVED
Dane Dougherty
@physalis_purple_mangosteen_chili_powder24458
I don't agree with this bill. It could cause problems for me.

APPROVED
Desmond Cross
@glengoyne_sansho_saffron94126
I can't believe this new bill is going to make it harder for me to access my own money. It's like they don't trust us to manage our own finances. This is going to be a real headache for me.

Recent Activity

Latest Summary10/20/2023

Financial Exploitation Prevention Act of 2023

This bill addresses the redemption of securities involving the potential financial exploitation of an adult by allowing an open-end investment company to elect to comply with c...


Latest Action9/12/2024
Committee on Banking, Housing, and Urban Affairs. Hearings held.