Georgia Enacts Broker-Dealer and Investment Adviser Financial Exploitation Law

On May 3, 2023, Georgia became the latest state to enact legislation to protect elder and vulnerable adults from financial exploitation. The new law which goes into effect on July 1, 2023, requires broker-dealers and state-registered investment advisers to report suspected financial exploitation to the Commissioner. Firms are also allowed, but not required, to contact third parties previously designated by the eligible adult.

Georgia’s law also permits firms to delay disbursements or transactions from an account owned by an eligible adult or an account on which an eligible adult is a beneficiary if certain conditions are met. Firms that take action pursuant to these provisions in good faith and exercising reasonable care are granted civil and administrative immunity. 

Further details and other state statutes in this area can be found in Bressler’s Interactive Senior and Vulnerable Investor Issues Map.

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Georgia Enacts Broker-Dealer and Investment Adviser Financial Exploitation Law