Finally, state rules may allow advisors to initially delay disbursements from an account of a vulnerable adult for up to 15 business days if, after review, there is suspicion that the disbursement may result in financial exploitation. Updates to state and federal rules may also allow advisors to notify any third parties designated by clients of their suspicions of financial exploitation, excepting any third party that are suspected to be the part of the financial exploitation. Both NASAA and the federal agencies have compiled evidence showing that trusted caregivers may obtain control over the vulnerable adult’s assets, then deprive them of the assets or convert the assets by exploiting the services of financial institutions including broker-dealers and investment advisors.3 State securities regulators, FINRA and the CFPB may begin to incorporate regulatory changes to address this public concern.
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Defending against false allegations requires an attorney who is experienced in representing clients in vulnerable adult financial exploitation cases, can perceive improper motivation, understands the nuances of capacity law and Civil and Probate Court procedures, has thorough working knowledge of A.R.S. Financial Exploitation of Vulnerable Adults Phoenix Lawyers Exposing Elder Financial Abuse. Within 2 days after delaying a disbursement or transaction, a qualified individual will notify the Securities Division and APS. Financial Abuse of Vulnerable Adults. As the elderly population continues to rise as Baby Boomers age, the financial exploitation of vulnerable adults has skyrocketed. In addition, two new rules have been proposed by FINRA, which are also designed to also help combat financial exploitation of vulnerable adults.2 Finally, to bring more attention to this issue, the Consumer Financial Protection Bureau (CFPB) issued a report directed at financial institutions aimed at combating elder financial exploitation. What Do Investors Want to Talk About With Their Financial Advisor? qualified individual to report the financial exploitation of a vulnerable Vulnerable Adults are more likely to entrust others with their financial affairs.
The Act provides immunity from administrative or civil liability to qualified individuals for taking actions permitted under the act.An individual, who you suspect is being financially exploited, is defined as an “eligible adult” if they are sixty-five (65) years of age or older or is a vulnerable adult. Reporting Financial Exploitation of a Vulnerable Adult. A “qualified individual” means a broker-dealer, investment adviser or See Testimony of Judith Shaw, NASAA President before the US Senate Special Committee on Aging at: AdvisorAssist News for RIAs is a series of articles that will help your firm understand and prepare for changes that may be occurring on the state or federal level. To prepare for dealing with vulnerable adults at your firm AdvisorAssist recommends the best practices of: 2. Vulnerable adult means an individual who is eighteen years of
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By trickery, intimidation, or coercion, or 3. Under A.R.S.
(See Qualified Individuals may impose an initial delay of disbursements from an eligible adult’s account for up to 15 business days if financial exploitation is suspected. You can report financial exploitation online by completing the Financial Exploitation Reporting Form: If you are unable to complete the form online, please contact us at This form is only intended for a A Vulnerable Adult is someone who, because of a mental or physical disability or due to age or other illness, is unable to look after their own health and finances and who is unable to protect themselves from exploitation by others. New Fallen Angel Bonds Drive Performance When the elder is too confused to give informed consent A slight majority of financial exploitation victims are elderly females over age 70 who reside alone. Advisors that have a reasonable belief that financial exploitation has been attempted or has occurred among their clients may be required to report it to the appropriate regulator and adult protective services agencies.