“Older Americans are operated by financial scams and lose billions of dollars every year,” said Hagerty. “I am pleased to re -introduce this legislation with Senator Gallego to offer financial professionals the opportunity to tackle the growing issue of financial exploitation and abuse of vulnerable investors.”
The Financial exploitation prevention law Would give the financial services new tools to probably tackle ‘specified adults’, defined by the bill as everyone aged 65 or older, or adults with physical or mental disabilities that they cannot protect their own interests.
Companies can postpone payments for a maximum of 15 working days, with the option to expand another 10 working days if they inform designated contacts, carry out an internal assessment and maintain funds on a demand deposit account.
The account directs the Securities and Exchange Commission (SEC) to recommend legislation and regulatory changes to CongressAnd it allows investment funds and their transfer agents to postpone repayments if exploitation is suspected.
The proposal calls for the SEC to consult with the Federal Reservethe Commodity Futures Trading Commissionthe Consumer Financial Protection BureauBanking regulations and state effects officers.
The measure comes when 10,000 Americans turn 65 every day, with seniors expected to be around 20% of the American population in 2030. Recent data of the Federal Trade Commission Show that in 2023 the 60-like-aged population lost more than $ 1.9 billion to financial scams.
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