Section 1. Short Title
Section 2. Definitions
Section 3. Governmental Disclosures
Section 4. Immunity for Governmental Disclosures
Section 5. Third-Party Disclosures
Section 6. Immunity for Third-Party Disclosures
Section 7. Delaying Disbursements
Section 8. Immunity for Delaying Disbursements
Section 9. Records
NASAA Model Legislation or Regulation to Protect Vulnerable Adults from Financial Exploitation | Adopted January 22, 2016
Legislative Text & Updated Commentary
for the 2019 Legislative Session
Financial exploitation is the fastest growing category of elder abuse in many states. According to the 2010 Investor Protection Trust Elder Fraud Survey, one out of every five citizens over the age of 65 has been victimized by a financial fraud. These frauds can be perpetrated by strangers, con artists, or even by family members and caregivers in whom the elderly have placed their trust.
State securities regulators are committed to protecting retail investors and are often well positioned to intercede on behalf of vulnerable seniors. However, to be successful in combating senior financial exploitation, securities regulators must be made aware of it. State legislatures should assist in this effort by enacting policies that will break down unwarranted barriers to the sharing of information about financial exploitation and inspire action by financial services professionals who are positioned to identify red flags. In this regard, the enclosed NASAA Model Act to Protect Vulnerable Adults from Financial Exploitation (“Model Act” or “Act”) represents an important and significant step forward.