Senior citizens would receive additional protection against financial fraud under a bill passed by a House committee last week, reports Financial Advisor.
The measure, called the Senior Security Act, was approved unanimously by the House Financial Services Committee. It now will be sent to the full House of Representatives for a vote.
The bill establishes the Senior Investor Taskforce within the Securities and Exchange Commission. The taskforce must report on topics relating to investors over the age of 65, including industry trends and serious issues impacting such investors, and make recommendations for legislative or regulatory actions to address problems encountered by senior investors.
In addition, the Government Accountability Office must report on the consequences of financial exploitation of senior citizens in order to give Congress more understanding of the full scope of the issue.
It has been estimated that senior citizens lose an average of $120,000 for each reported incident of financial abuse or exploitation. Overall, seniors lose an estimated $2.9 billion each year to financial fraud.
Officials at the Insured Retirement Institute sent a letter to lawmakers stressing the need for a concerted effort to combat financial exploitation, citing the fact that the number of older Americans is expected to double to 84 million by 2050. “Financial abuse can erase a lifetime of savings and leave an older American in financial ruin,” the letter said.
Another measure, the Financial Exploitation Prevention Act, has been unanimously passed by the House and been sent to the Senate. It would require mutual funds to delay the redemption of a security if financial exploitation of a senior or other vulnerable person is suspected.
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. Our team includes lawyers who have worked for large financial institutions, including Morgan Stanley and UBS Financial Services, and regulatory bodies such as the SEC. If your financial professional or financial firm engaged in negligent or intentional misconduct concerning your retirement savings, contact Lewitas Hyman at (888) 655-6002 or through our online contact form for a no-cost evaluation of your matter.