On May 24, 2018 Pres. Trump signed the Senior Safe Act. The Senior Safe Act encourages financial services firms such as investment adviser firms to train employees to spot elder abuse, while granting limited immunity to individuals at financial institutions who report such abuse to law enforcement or regulators in accordance with the Act. The banking reform package of which the Senior Safe Act is part, formally known as S. 2155 or the Economic Growth, Regulatory Relief and Consumer Protection Act, modifies provisions of the Dodd-Frank Act.
RIA Compliance Consultants recommends that an investment adviser firm consider the following to help protect senior investors:
- Adopt policies and procedures designed to address issues that may arise when assisting elderly clients
- Address how your investment adviser firm monitors and meets the changing needs of clients as they approach retirement age
- Adopt policies and procedures designed to handle situations in which a client exhibits diminished capacity or financial competence
- Provide regular training to all staff, including back office personnel, on recognizing and preventing financial abuse of the elderly and other vulnerable clients.
While this list provides a good start, there is so much more your investment adviser firm can do. RIA Compliance Consultants has developed a sample written supervisory procecure/code of ethics (“WSP/CoE”) section that investment adviser firms can incorporate into their compliance manual. This update section is included with Silver, Gold, and Platinum packages. It can also be purchased on a la carte basis by for $250. Click here to view this WSP/CoE Section Update.
Additionally, we developed an Elder Abuse and Vulnerable Adult Module in our RIA Express Compliance Review Tool, which is available through our Silver Package.
If you would like more information regarding the RIA Express Compliance Review Subscription or any of our compliance support services, contact your consultant or click hereto schedule an introductory call.
Posted by Grant Parr