Legislation to protect seniors from financial abuse advances in House

On Behalf of | Dec 8, 2021 | Financial News

A bill to help protect senior citizens from financial abuse and exploitation was approved recently by a House panel, according to Investment News. The Empowering States to Protect Seniors from Bad Actors Act, H.R. 5914, was advanced on a unanimous voice vote by the House Committee on Financial Services.

The legislation would create a Senior Investor Protection Grant Program that would be implemented by the Securities and Exchange Commission. It would authorize $10 million each year to enhance the protection of elderly investors. The funds would be applied to hiring investigative staff, strengthening technology and training for law enforcement, and educating seniors on financial fraud. The bill transfers responsibility for administering the program from the Consumer Financial Protection Bureau to the SEC. A task force would be established within the SEC to review grant applications for the program.

The measure was voted out of committee with bipartisan support, and it now will be considered by the full House of Representatives. It follows efforts by state regulators to protect seniors from financial abuse, including the North American Securities Administrators Association’s model act which includes mandatory reporting of suspected abuse. The NASAA said a recent survey showed the need for investment advisers to improve their own efforts to recognize and report suspected abuse of seniors.

Lewitas Hyman routinely represents investors nationwide who were harmed when financial professionals and their firms mismanaged investors’ retirement savings or otherwise misadvised clients with respect to their retirement savings. If your financial professional or financial firm engaged in negligent or intentional misconduct concerning your retirement savings, contact us at (312) 291-4600 or through our online contact form for a no-cost evaluation of your matter from an experienced retirement planning negligence attorney in Chicago.

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