IRI, a coalition of consumer organizations representing the retirement industry, is advocating for increased support from the federal government for state adult protective service agencies that need resources to investigate complaints of financial exploitation of the elderly population.
The organization also will provide training materials for financial advisors about how and when to report suspected abuse, will launch an awareness campaign for advisors and will create an online resource center.
According to an IRI survey of 150 financial advisors, more than half of them said they suspected cases of exploitation of older investors that was going on regularly—ranging from a few times a year to weekly. Sixty percent of advisors say the most frequent type of abuse is misuse of funds by trusted family members or friends.
Nearly all the financial advisors in the survey knew they could not be held liable for reporting suspected exploitation under the newly signed Senior Safe Act. “However, many may not be aware that the law requires them to complete training approved by regulators in order to be shielded from liability,” IRI said.
Many firms already provide training but they need to review it to determine whether its content meets the requirements, IRI advised.
“Older investors are particularly vulnerable to exploitation due to declining cognitive abilities and the effect that has on their ability to discern between legitimate and fraudulent investments,” says Cathy Weatherford, president and CEO of IRI.
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IRI Urges Advisors To Fight Elder Financial Abuse
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