Seniors and Vulnerable Adults Gain Protection through National Act

Nashville, TN – The North American Securities Administrators Association (NASAA) has adopted a model act designed to protect adults 65 or older, and other populations at increased risk of diminished capacity or other cognitive impairment, from financial exploitation.

The Tennessee Department of Commerce & Insurance’s (TDCI) Securities Division is a member of the NASAA.

The model, known as an “Act to Protect Vulnerable Adults from Financial Exploitation,” was developed by a special NASAA committee established to tackle a wide range of challenges confronting senior investors, regulators, and securities industry professionals. The model is designed to be enacted by state governments as legislation or implemented through regulation.

“This model provides new tools and authorities to help detect and prevent financial exploitation of seniors and adults with diminished capacity,” TDCI Assistant Commissioner for Securities Frank Borger-Gilligan said. “The model will make it easier for securities regulators, investment advisers and brokers-dealers, as well as Adult Protective Services agencies, to work in partnership to protect our most vulnerable citizens.”

Specifically, the model act:

Mandates reporting to the state securities regulator and state adult protective services agency when a qualified individual such as a securities broker or investment adviser has a reasonable belief that financial exploitation of an eligible adult has been attempted or has occurred.

Enables broker-dealers or investment advisers to impose an initial delay of disbursements from an account of an eligible adult for up to 15 business days if financial exploitation is suspected. The delay can be extended for an additional 10 days at the request of either the state securities regulator or adult protective services.

Provides immunity from administrative or civil liability for broker-dealers and investment advisers for taking actions including delaying disbursements as permitted under the act.

Requires qualified individuals such as securities brokers or investment advisers to provide records that are relevant to the suspected or attempted financial exploitation to government authorities.

Authorizes notification to third parties only in instances where an eligible adult has previously designated the third party to whom the disclosure may be made. Importantly, the model act directs that disclosure may not be made to the third party if the qualified individual suspects the third part of the financial exploitation.

The model act applies to adults age 65 and older and individuals who qualify for protection under a state adult protective services statute. The model act defines “qualified individual” as broker-dealer agents; investment adviser representatives; those who serve in a supervisory, compliance, or legal capacity for broker-dealers and investment advisers; and any independent contractors that may be fulfilling any of those roles.

The full text of the model act, along with background information is available in the Policymakers section of NASAA’s Serve Our Seniors website at http://serveourseniors.org.

For more information about the Tennessee Securities Division, call 1.800.863.9117 or visit http://tn.gov/commerce/section/securities.

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Seniors and Vulnerable Adults Gain Protection through National Act

New model act from national organization hopes to end financial exploitation of seniors

NASHVILLE, Tenn. (WVLT) -- Tennessee hopes new guidelines from a national organization can help in preventing the financial exploitation of people 65 and older, or people who have an increased risk for diminished capacity or other cognitive impairments.

The Tennessee Department of Commerce & Insurance's (TDCI) Securities Division hopes the state legislature will pass a new model act from the North American Securities Administrators Association (NASAA).

The “Act to Protect Vulnerable Adults from Financial Exploitation” is a set of guidelines that NASAA hopes will “tackle a wide range of challenges confronting senior investors, regulators and securities industry professionals.”

In order for the model act to work in Tennessee, the state legislature will have to adopt the guidelines as law.

The act would help address several points of concern, like requiring records from brokers or advisers to provide records that could show suspected or attempted fraud and gives the brokers or advisers immunity for withholding disbursements if they suspect exploitation may be happening.

If enacted, the model act would only apply to people 65 or older and individuals who qualify for protection under a state adult protective services statute.

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New model act from national organization hopes to end financial exploitation of seniors

Experts offer tips on how older residents can protect themselves from financial exploitation

KPLC 7 News, Lake Charles, Louisiana
It happens too often — elderly residents being targeted by people they trust.

Last week, 42-year-old Mark Eldridge was accused of stealing around $4,000 from an elderly man who trusted Eldridge with his finances, even giving him power of attorney. The loss of the money led to the foreclosure of victim's home.

"I believe this guy saw this elderly gentleman; he was vulnerable, took advantage of him; cleaned him out," said LaWanda Gibson, managing attorney for Acadiana Legal Services. She works closely with the Calcasieu Council on Aging and speaks with elderly residents several times a week who fall victim to the same thing.

Calcasieu Parish Sheriff Tony Mancuso said his office hears about these incidents daily. He advised seniors to be careful when choosing someone to handle their financial responsibilities.

"You have to pick somebody that you trust and they have to have a clear understanding of what your goals are and your objectives are about how you want them to spend your money," said Mancuso.

Gibson said there are three major signs elderly residents need to look out for with financial exploitation.

"Check your bank statements. If there's a withdrawal out your account that you're not aware about, follow up on it. If you're getting calls from bill collectors you're not familiar with, if you're getting credit cards that you did not apply for," said Gibson.

"There's always a way to put in some checks and balances. The best way is to have more than one person who have no affiliation with each other to check the other one's work," said Mancuso.

If you believe you may be a victim of financial exploitation, contact law enforcement.

"A predator can be a family member; it can be a stranger. If they find a vulnerable spot, they're going to take advantage of it," said Gibson.

The Calcasieu Parish Sheriff's Office is hosting a safety for seniors seminar. The seminar is free for all seniors ages 55 or older who are interested in their personal and financial safety. It will be held 9 a.m.-11:30 a.m.Wednesday, Oct.  28 at the Calcasieu Parish Sheriff's Office, in the John Scott Doyle Building, at 5400 East Broad Street.

The seminar will feature presentations on personal protection, identity theft, how to avoid being a victim of fraud, and  ho to be prepared. Call 337-491-3737 to RSVP.

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Experts offer tips on how older residents can protect themselves from financial exploitation

Missouri lawmakers send governor financial exploitation measure to protect seniors

JEFFERSON CITY, Missouri — Financial professionals who suspect an older Missouri resident or person with a disability is the target of financial fraud would have broader authority under a measure headed to the governor.

The Missouri Senate voted 33-1 Wednesday on a measure that supporters say will give latitude to financial advisers to protect seniors from financial exploitation.

The bill would provide legal protections for financial advisers who put a hold on transactions they deem suspicious for a limited time.

The hold would be allowed for only people over 60 or those with disabilities.

The financial professional would have to inform a relative, attorney or the authorities about the potential fraud.
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The financial fraud bill is SB 244.
 
Online:
Senate: http://www.senate.mo.gov

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Missouri lawmakers send governor financial exploitation measure to protect seniors

Probate Court names 3 to oversee guardianships

Franklin County Probate Judge Robert G. Montgomery

The Franklin County Probate Court has named three people to oversee guardianships, making Franklin County the first in the state with such a program.

Probate Judge Robert G. Montgomery said in an email that he will work closely with the group to make sure that the county’s most-vulnerable residents are not exploited, abused or neglected by the people entrusted with their care.

He is referring to the thousands of county residents deemed by the court unable to care for themselves and who have court-appointed guardians.

A yearlong Dispatch investigation revealed that the patchwork system of rules for guardianship in Ohio is ripe for abuse, and that a lack of oversight has allowed some attorneys and family members to steal the dignity, money and freedom of those they promised to protect.

Montgomery, who has long known there were problems with the guardianship system in Ohio, set out more than a year ago to create the Franklin County Guardianship Service Board. The nonprofit board will be managed by three members appointed by him and by the board members of the county’s Alcohol, Drug and Mental Health Board and Board of Developmental Disabilities.

He announced local lawyer Larry H. James as his appointee to the board.

The ADAMH board appointed Jane Higgins Marx, another Columbus lawyer with a long history of work in probate and elder law.

The developmental disabilities board named William W. Wilkins as its appointee. Wilkins is a health-care consultant with a long history in state government.

In announcing the board’s charter members yesterday, Montgomery said that they will ensure the safety of county residents.

“I believe that this new board will elevate the level of service delivery to those citizens unable to protect themselves,” he said.

The board members will now hire an executive director to serve as guardian for the county’s hardest-to-serve residents, typically those with a mental illness who don’t live in a nursing home or other group setting.

The new agency is expected to hire social workers to serve the most-difficult people, while Montgomery’s vision is to deploy volunteers and interns to work with others and visit them to check on their welfare.

To create the board, Montgomery had to seek changes to Ohio law to allow social-services agencies and charities to donate to a fund to start and operate the agency.

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Probate Court names 3 to oversee guardianships

Certified Financial Board of Standards (CFB) Releases Guide for Protecting Older Americans From Financial Abuse

Older Americans are too often victims of financial fraud and abuse. Recognizing this unfortunate trend, Certified Financial Planner Board of Standards, Inc. today released a free guide, Financial Self-Defense for Seniors, which is informed by recent survey data on senior financial exploitation, to help older Americans and their families identify the warning signs of financial abuse and to better protect themselves and their loved ones.

"CFP Board remains deeply concerned about incidents of consumers – particularly senior citizens – being misled by those claiming to be trusted financial professionals," said CFP Board CEO Kevin R. Keller , CAE. "This guide to financial self-defense will help protect seniors from abusive, fraudulent and unethical financial practices."

Financial Self-Defense for Seniors was written by CFP Board Consumer Advocate Eleanor Blayney, CFP®. It describes 10 "Red Flags" – common situations in which older Americans are vulnerable to financial abuse – and provides warning signs of financial abuse; real-life situations in which seniors are often taken advantage of; and advice for guarding against such abuse.

The guide draws upon CFP Board's 2012 Senior Financial Exploitation Survey of more than 2,600 CFP® professionals, which found that more than half had personally worked with an older client who had been subject to unfair, deceptive or abusive financial practices in the delivery of financial advice or the sale of financial products. Participating CFP® professionals estimated that only five percent of senior citizens actually report such financial abuse.

The survey also found that CFP® professionals were aware of a variety of abusive practices in the delivery of financial advice or the sale of financial products, including some practices that could violate state and federal regulations:

•Nearly three-quarters (73%) were aware of older investors who have been invited to "free meal" seminars that were actually sales pitches;
•58% were aware of older investors who have received unsolicited pitches for financial products or services; •Nearly three-quarters (74%) of CFP® professionals were aware of older investors who have been offered unsuitable financial products; and
•58% were aware of older investors who have been subject to omission of material facts about financial products.

"CFP Board wants to shine a bright light on those who seek to abuse older Americans so that all seniors and their families can defend themselves against scammers," Blayney said. "Seniors have contributed so much to our families, communities and our country. We owe them our thanks, but also our protection, so that they may live out their remaining years in financial security."

Financial Self-Defense for Seniors is part of CFP Board's series of financial self-defense guides, including the Consumer Guide to Financial Self-Defense, released in 2010. The U.S. General Services Administration's (GSA) will include the guide in its Fall 2013 Consumer Information Catalog. The public can access an online version by visiting www.cfp.net/financial-self-defense-for-seniors or requesting a hard copy by sending an email to mail@CFPBoard.org or calling 800-487-1497.

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CFP Board Releases Guide for Protecting Older Americans From Financial Abuse

See Also:
Financial Self Defense for Seniors

LTC Facilities and Financial Institutions to Play a Role in Preventing, Detecting and Reporting Elder Financial Abuse

Long-term care (LTC) facilities, financial institutions, and anyone involved with keeping tabs on home care providers could play a role in preventing, detecting and reporting elder financial abuse.

Witnesses talked about strategies for fighting financial abuse Thursday at a hearing organized by the Senate Special Committee on Aging.

The witnesses did not talk about long-term care insurance (LTCI), and they mentioned annuities and life insurance only in passing.

But several did talk about LTC providers.
Hubert "Skip" Humphrey, III, an assistant director in the Office of Older Americans at the new Consumer Financial Protection Bureau (CFPB), testified that "bad actors" could include family caregivers or paid caregivers as well as financial advisors, fiduciaries, home repair contractors or scam artists.

"Development of strategies to deal with the myriad of 'bad actors' is essential," Humphrey said, according to a written version of his remarks posted on the committee website.

One step the Office for Older Americans is taking is to develop guides for "lay fiduciaries," to help family members and others handle older people's money in a prudent fashion and spot possible signs of financial exploitation, Humphrey said.

The office also is producing a guide aimed at LTC facility operators.

The office is hoping the facility operators will identify possible cases of financial exploitation and do something about them, Humphrey said.

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Nursing Home Payment Missing? Could be Fraud