Recently, there has been a wave of legislation and regulatory action focused on senior investor protections. The U.S. Congress just passed the Senior Safe Act, a law which provides legal immunity to an investment adviser, if the investment adviser meets certain requirements, for the act of reporting suspected senior financial exploitation. Both the U.S. Securities and Exchange Commission (“SEC”) and FINRA have had a senior investor exam initiative going on since 2014. In addition, almost every state has a law pertaining to senior exploitation.
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.
Investment Advisers Need to Train Supervised Persons and Update Compliance Manual Due to Recent Passage of Senior Safe Act
June 12, 2018
Over the past several years, there has been a significant amount of movement within the financial services industry to develop policies, rules, and regulations that help safe guard the senior investor community. In 2014, the U.S. Securities and Exchange Commission (“SEC”), in coordination with FINRA, released a report on a recent senior investor initiative they had conducted. The exams that comprised the report focused on issues of suitability of investments for seniors, disclosures, account documentation, diminished capacity, and senior financial exploitation. This initiative showed that the SEC was taking an interest in senior protections and that investment advisers must follow different policies and procedures when recommending securities to and working with senior clients.
June 05, 2018
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.
February 06, 2018
On Jan. 24, 2018 the United States House of Representatives passed the Senior Safe Act. The Senior Safe Act (referred to as “the Act,” formerly H.R. 3758) encourages financial services 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.
September 06, 2017
An investment adviser firm and its investment adviser representatives are uniquely placed to spot signs of financial exploitation that may be happening to their investment advisory clients. An investment adviser representative is often on the front lines of a client’s finances and becomes quite familiar with a client’s habits, preferences, and personal situation. This knowledge can help the investment adviser representative spot unusual patterns and suspicious requests, whether made directly by the client or by a third party.
Wisconsin Enacts Securities Law that Toughens Penalties for Violations By Investment Advisors Against Seniors
May 18, 2010
Wisconsin has enacted a law which enhances the penalties for violations of the Wisconsin Securities Act if the violations occur against an individual who is 65 years of age or older. The Wisconsin Securities Act prohibits various forms of fraud in connection with the sale or offering of securities or any other securities transactions. Specifically, registered investment advisors, as well as broker dealers, are prohibited form engaging in fraud or employing manipulative, deceptive, or fraudulent devices.