NASAA GUIDE FOR DEVELOPING PRACTICES AND PROCEDURES FOR PROTECTING SENIOR INVESTORS AND VULNERABLE ADULTS FROM FINANCIAL EXPLOITATION

About This Guide

Having up-to-date policies and practices in place that address potential cases of diminished capacity and financial exploitation will better equip financial services professionals to: 1) recognize diminished capacity and financial exploitation; 2) understand when and how to escalate reporting of such issues within a firm; and 3) direct reports to governmental agencies that can conduct additional investigations and provide needed services.

This Guide highlights certain requirements and options available under existing state laws, NASAA’s Model Act, and voluntary practices, coupled with suggestions on how firms should develop policies and procedures to mitigate potential damage caused by senior exploitation and issues related to cognitive decline or diminished capacity. The Guide is structured around five key concepts:

• identifying vulnerable individuals
• governmental reporting
• third-party reporting
• delaying disbursements from client accounts; and
• continuing regulatory cooperation following reports or disbursement delays.

The guide focuses on steps that firms can take to identify and respond to issues that are common in working with senior investors and are likely to assist firms in utilizing the new statutory tools available to address issues related to senior financial exploitation and diminished capacity. We hope this Guide encourages financial services firms to continue to identify and implement additional practices that address the particular needs of senior investors.

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NASAA Guide For Developing Practices and Procedures For Protecting Senior Investors and Vulnerable Adults From Financial Exploitation

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