The states of Alabama, Indiana, and Vermont approved measures earlier this year designed to require financial advisers to report possible exploitation of senior citizens and other vulnerable adults. These measures will also protect advisers from civil liabilities, as well as allow them to stop the disbursement of funds from client accounts.
The laws went into effect July 1.
Investment News elaborated more on the importance of the measures:
In addition to mandatory reporting in situations involving people older than 65 or who are disabled, they also allow advisers to stop the disbursement of funds from client accounts and give advisers immunity from civil liability.
The focus on this issue is a natural result of the burgeoning number of retirees and their wealth, said Joseph Borg, director of the Alabama Securities Commission. He made an analogy to Willie Sutton, a notorious thief who once said he robbed banks “because that’s where the money is.”
“Guess where the money is these days,” Mr. Borg said. “It’s with the folks over 65. It’s the senior population that has the assets.”
Three other states have previously enacted similar laws. These are Delaware, Missouri, and Washington. What is fortunate is that, at present, a House Bill has been passed to provide long-term protection to seniors all over the country, the SeniorSafe Act.
