NASAA Model Legislation or Regulation to Protect Vulnerable Adults from Financial Exploitation | Adopted January 22, 2016

 

Legislative Text & Updated Commentary
for the 2017 Legislative Session


Section 9. Records

A broker-dealer or investment adviser shall provide access to or copies of records that are relevant to the suspected or attempted financial exploitation of an eligible adult to agencies charged with administering state adult protective services laws and to law enforcement, either as part of a referral to the agency or to law enforcement, or upon request of the agency or law enforcement pursuant to an investigation.  The records may include historical records as well as records relating to the most recent transaction or transactions that may comprise financial exploitation of an eligible adult.  All records made available to agencies under this section shall not be considered a public record as defined in [State public records law].  Nothing in this provision shall limit or otherwise impede the authority of the state securities commissioner to access or examine the books and records of broker-dealers and investment advisers as otherwise provided by law.


Commentary:

Section 9 ensures appropriate access to the records of broker-dealers and investment advisers by agencies in cases of suspected or attempted financial exploitation by requiring that broker-dealers and investment advisers provide such records to APS agencies.  Section 9 also clarifies that records shared by broker-dealers or investment advisers pursuant the Act shall not be subject to state public records laws. This provision is intended to facilitate disclosure to APS agencies while maintaining the confidentiality of personal financial information.  This provision does not diminish the authority of securities regulators to examine or obtain the records of broker-dealers or investment advisers under currently applicable law.[i] 


NOTES

[i] It is NASAA’s understanding that APS agencies often have difficulty obtaining records from financial firms in a timely fashion.  Mandating record sharing will help forestall this potential problem.  Given the often urgent nature of these matters, it is important to make clear in the Model that broker-dealers and investment advisers must comply with requests for information from APS agencies or law enforcement.

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