This legislation gives securities officials and financial institutions the tools they need to help detect and prevent financial exploitation of those age 65 and older and vulnerable adults with diminished capacity.
The legislation comes from the Elderly and Vulnerable Adult Abuse Task Force, which worked with Tennessee’s financial community to recommend the changes.
Approximately one in five seniors has been a victim of financial exploitation at a cost of approximately $2.9 billion annually.
Moreover, these numbers are likely low as it is also estimated that only one out of every 44 instances of financial abuse is actually reported.
Called the Senior Financial Protection and Securities Modernization Act, House Bill 304
- Provides a pathway for voluntary reporting by giving civil and administrative immunity to broker-dealers, investment advisers, agents, representatives and other qualified individuals for reporting the suspected abuse or exploitation;
- Allows those individuals to delay disbursements from an account for up to 15 days if financial abuse or exploitation is suspected (that delay could be extended to up to 25 days upon request by the commissioner and by court order);
- Grants the Commissioner of Commerce and Insurance authority to create additional guidelines by rule for delayed-disbursement when fraudulent activities are suspected;
- Authorizes notification to third parties previously designated by the elderly or vulnerable adult regarding any suspected fraudulent transactions; and,
- Gives the Commissioner authority, under the state’s Uniform Administrative Procedures Act, to double current civil penalties to up to $10,000 to $20,000 per violation against offenders who victimize a vulnerable or senior adult.
- It has been estimated that 41.4 percent of the offenses of financial exploitation were committed by a family member and another 13.3 percent of victims were described by law enforcement as having close relationships with the perpetrator.
- Provides new authority for financial institutions to delay or refuse to conduct transactions which permit the disbursement of funds from the account of an elderly customer or vulnerable adult when exploitation is suspected;
- Permits, but doesn’t require, the financial institution to establish a list of persons the customer would like to have contacted if the institution suspects the customer is a victim of financial exploitation or theft;
- Allows financial institutions to refuse to accept an authorized power of attorney if they believe the person is conducting financial exploitation; and,
- Requires the Tennessee Department of Financial Institutions to consult with financial service providers, the Tennessee Commission on Aging and Disability, and the Department of Human Services to develop a public education campaign to alert the public to the dangers of vulnerable adults from financial exploitation.
Full Article & Source:
Legislation to Protect Elderly and Vulnerable Adults from Financial Exploitation Being Considered