Has Your Investment Adviser Updated its Compliance Manual and Training Since Passage of Senior Safe Act?

June 28, 2018

State and federal legislators have recognized that employees of investment adviser firms are likely to be one of the first people to see signs of financial exploitation in their senior and vulnerable clients. This has led to nearly every state passing legislation on this topic, and now the federal government has as well.

The U.S. Congress just recently passed, and the U.S. President signed into law a broad legislative package known as the Economic Growth, Regulatory Relief, and Consumer Protection Act. Within it, there was a piece of legislation that had been known as the Senior Safe Act which was designed to encourage different entities in the financial services industry (Investment Advisers, Broker-Dealers, Banks, Insurance Companies, etc.) to report suspected financial exploitation of seniors and vulnerable clients. It encourages an investment adviser firm to report suspected financial exploitation to the applicable governmental authorities by providing a standard or criteria for receiving legal immunity from civil and administrative proceedings for making a disclosure of suspected exploitation.

In addition to the Senior Safe Act almost every single state has passed legislation covering this topic. Almost all states have statutes that grant immunity to the reporter under particular circumstances. About half of the states have laws that make reporting suspected senior financial exploitation mandatory. Other states have enacted laws that permit delayed account disbursements when exploitation is suspected.

RIA Compliance Consultants has compiled a package to assist your investment adviser firm in complying with these state and federal laws designed to protect senior and vulnerable clients from financial exploitation. The package includes training materials on how to identify and report financial exploitation of senior and vulnerable clients (as required by the Senior Safe Act), a sample Internal Exploitation Reporting Form, a sample investment adviser written supervisory procedures/code of ethics (“compliance manual”)section addressing issues with senior and vulnerable clients and exploitation reporting, a sample Trusted Emergency Contact Form, and a listing of all 50 state senior exploitation laws, which includes general requirements under each state law, state agencies that reports can be filed with, and links to the full copy of the law.  (Please understand that this listing of state laws may become dated and RIA Compliance Consultants will not necessarily update this listing on a regular basis.)

These items are available to purchase together as a package here. You may also purchase the items a-la-carte on our web store here. Our Platinum Package clients will receive this package as part of their annual compliance plan.

Posted by Grant Parr
Labels: Seniors