NAIFA-New Hampshire advocacy efforts paid off earlier this month when Governor Chris Sununu signed a new law that aims to protect seniors from financial exploitation. The law, which is based on model legislation developed by the North American Securities Administrators Association (NASAA), allows a broker-dealer to temporarily delay executing a client’s disbursement of funds request if the broker-dealer suspects financial exploitation may be involved. Further, the broker-dealer and the financial advisor may voluntarily report the suspected financial exploitation to state authorities, and advisors and their firms are immune from civil liability for following the provisions of this important law.
The New Hampshire Bureau of Securities Regulation's press release announcing the new law specifically thanks NAIFA for its support. From the Bureau’s press release:
"[Bureau] Director Glennon thanked the legislature, the governor, and the Bureau of Elderly and Adult Services of the NH Department of Health and Human Services for their support. He also expressed appreciation to the Financial Planners Association,National Association of Insurance and Financial Advisors,and NH Legal Assistance and its Elder Law Project. 'This law is good for everyone involved, especially for vulnerable adults and securities firms trying to protect vulnerable clients.'”
The law will take effect September 8, 2019. To date, 23 states have passed laws or approved regulations based on the NASAA model.
NAIFA generally supports proposals intended to protect seniors and other vulnerable adults from financial fraud and exploitation provided it allows for a voluntary reporting process and affords a legal “safe harbor” provision for financial professionals who report suspected financial exploitation to government officials and authorized third-parties.
"NAIFA is the only membership association for insurance and financial professionals with a strong advocacy presence and influence in every state capital," said NAIFA CEO Kevin Mayeux. "It is very satisfying when we can work though our state chapter, as happened here in New Hampshire, to advance legislation that helps not only our members but also the members of the public they serve."
