The Pulse

Financial Coalition Urges Senate Passage Of Financial Exploitation Prevention Act

Call comes ahead of World Elder Abuse Awareness Day

The Financial Services Institute (FSI), the Investment Company Institute (ICI), the Insured Retirement Institute, and the Securities Industry and Financial Markets Association (SIFMA) call for the passage of a bill aimed at protecting vulnerable adults from financial exploitation.

WASHINGTON, D.C. – As World Elder Abuse Awareness Day approaches, the Financial Services Institute (FSI), the Investment Company Institute (ICI), the Insured Retirement Institute, and the Securities Industry and Financial Markets Association (SIFMA) call on senators to pass the Financial Exploitation Prevention Act (S. 1841) and for President Biden to sign it into law. The bill aims to protect vulnerable adults from financial exploitation by permitting companies to postpone securities redemption if they suspect exploitation of seniors or individuals unable to protect their interests.

The bipartisan legislation, introduced by Senators Bill Hagerty (R-TN) and Jon Tester (D-MT) and Representatives Josh Gottheimer (D-NJ-05) and Ann Wagner (R-MO-02), comes at a time when financial exploitation of seniors is increasing. According to the Bureau of Justice Statistics, in 2022, there were 167,889 reported fraud or other financial incidents committed against adults aged 65 or older. In 2023, elder fraud complaints increased by 14%, with corresponding losses rising by 11%.

“As we mark World Elder Abuse Awareness Day, we applaud lawmakers for their commitment to preventing elder financial abuse and increasing protection for seniors,” said FSI President and CEO Dale Brown. “However, there is more to do, which is why we urge the Senate to pass the Financial Exploitation Prevention Act now. With the increase in new technologies, including AI, financial fraudsters are growing more sophisticated in their schemes to defraud seniors. Financial advisors often serve as the first line of defense in detecting and preventing elder financial abuse and fraud, and this legislation equips our members with the necessary tools to best protect senior clients. ”

As we mark World Elder Abuse Awareness Day, we applaud lawmakers for their commitment to preventing elder financial abuse and increasing protection for seniors...

“We strongly support the efforts in the Senate to pass the Financial Exploitation Prevention Act (S. 1841) to protect our senior citizens from the threat of financial exploitation,” said SIFMA President and CEO Ken Bentsen. “This legislation is a helpful, additional tool in providing essential safeguards for vulnerable adults. As financial crimes against seniors continue to rise, it is imperative that we equip our industry with the tools needed to combat these increasingly sophisticated schemes. We commend the bipartisan effort behind this bill and call on President Biden to sign it into law. By doing so, we take an additional step towards ensuring the financial security and dignity of our elder population.”

“Mutual funds are vital to building financial security for millions of Americans, and around a third of those are seniors. The bill would give our industry better tools to address suspected financial exploitation and abuse of seniors and those with mental and physical disabilities,” said ICI CEO and President Eric J. Pan. “As we approach World Elder Abuse Awareness Day, ICI thanks Senators Hagerty and Tester and Representatives Wagner and Gottheimer for their leadership on this important legislation. We urge the Senate to pass the bipartisan Financial Exploitation Prevention Act swiftly so seniors and vulnerable investors can receive a greater level of protection.”

“Prevention of financial exploitation and the protection of older and vulnerable Americans is an important IRI objective,” said Wayne Chopus, President and CEO of IRI. “Our members are on the front lines of this issue, working with clients across America every day. As a result, they are often the first to notice that a client may be the victim of a financial crime. We urge the Senate to act quickly to pass this bipartisan solution to protect retirees and their hard-earned savings from the potentially devastating effects of economic exploitation and fraud.”

Last year, the House of Representatives unanimously passed the bill, a pivotal step in preventing the financial exploitation of vulnerable adults.

 

 

 

About FSI
The Financial Services Institute (FSI) is the only organization advocating solely on behalf of independent financial advisors and independent financial services firms. Since 2004, through advocacy, education and public awareness, FSI has successfully promoted a more responsible regulatory environment for over 80 independent financial services firm members and their 130,000+ affiliated financial advisors – which comprise over 60% of all producing registered representatives. We effect change through involvement in FINRA governance as well as constructive engagement in the regulatory and legislative processes, working to create a healthier regulatory environment for our members so they can provide affordable, objective advice to hard-working Main Street Americans. For more information, please visit financialservices.org.
About ICI
The Investment Company Institute (ICI) is the leading association representing regulated investment funds. ICI’s mission is to strengthen the foundation of the asset management industry for the ultimate benefit of the long-term individual investor. ICI’s members include mutual funds, exchange-traded funds (ETFs), closed-end funds, and unit investment trusts (UITs) in the United States, and UCITS and similar funds offered to investors in other jurisdictions. Its members manage $34.1 trillion invested in funds registered under the US Investment Company Act of 1940, serving more than 100 million investors. Members manage an additional $9.4 trillion in regulated fund assets managed outside the United States. ICI also represents its members in their capacity as investment advisers to certain collective investment trusts (CITs) and retail separately managed accounts (SMAs). ICI has offices in Washington DC, Brussels, and London and carries out its international work through ICI Global.
About IRI
The Insured Retirement Institute (IRI) is the leading association for the entire supply chain of insured retirement strategies, including life insurers, asset managers, broker-dealers, banks, marketing organizations, law firms, and solution providers. IRI members account for 90 percent of annuity assets in the U.S., include the foremost distributors of protected lifetime income solutions, and are represented by financial professionals serving millions of Americans. IRI champions retirement security for all through leadership in advocacy, awareness, research, and the advancement of digital solutions within a collaborative industry community. Learn more at irionline.org.
About SIFMA
SIFMA is the leading trade association for broker-dealers, investment banks and asset managers operating in the U.S. and global capital markets. On behalf of our industry’s one million employees, we advocate on legislation, regulation and business policy affecting retail and institutional investors, equity and fixed income markets and related products and services. We serve as an industry coordinating body to promote fair and orderly markets, informed regulatory compliance, and efficient market operations and resiliency. We also provide a forum for industry policy and professional development. SIFMA, with offices in New York and Washington, D.C., is the U.S. regional member of the Global Financial Markets Association (GFMA). For more information, visit sifma.org.