NAIFA strongly supports efforts to prevent the financial exploitation of seniors and vulnerable adults. As trusted and licensed insurance and financial professionals who abide by a Code of Ethics and work in the best interests of their clients, NAIFA members are often ideally positioned to recognize and help prevent financial abuse and exploitation.
NAIFA strongly supports the bipartisan Financial Exploitation Prevention Act, which unanimously passed the House of Representatives earlier this year. According to its House sponsor, Representative Ann Wagner (R-MO), the bill “permits a registered open-end investment company or transfer agent for that company, including mutual funds, to better protect seniors by delaying the redemption period of any redeemable security if it was reasonably believed that such redemption was requested through the financial exploitation of a security holder who is a senior or an individual unable to protect their own interests.”
NAIFA has now joined other industry organizations in sending a letter to Senators Jon Tester (D-MT) and Bill Hagerty (R-TN) thanking them for their leadership on the issue and urging the Senate to pass it quickly.
Approximately 20% of Americans over the age of 65 are harmed by financial fraud resulting in losses of more than $2.9 billion annually, according to Representative Wagner. NAIFA supports a voluntary reporting process under which agents and advisors may report suspected financial exploitation of a senior client to their firms, which will if appropriate report them to the authorities. NAIFA also supports a legal “safe harbor” provision for advisors who report suspected financial exploitation so that advisors and their firms are immune from liability for following the law’s provisions.