The U.S. House of Representatives passed H.R.500, the Financial Exploitation Prevention Act of 2023, by a bipartisan vote of 419-0 on January 30. H.R. 500 was introduced by Rep. Ann Wagner, (R-MO), Chairwoman of the House Financial Services subcommittee on Capital Markets.
The bill would give the financial industry better tools to address suspected financial exploitation and abuse of seniors and those with mental and physical disabilities. The bill would require the Securities and Exchange Commission to report to Congress on recommendations for legislative and regulatory changes on how to combat financial exploitation of seniors and vulnerable adults.
Additionally, 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 continues to champion protections and safeguards for seniors and encourages the U.S. Senate to pass the bill in a timely fashion.