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 [1]. In 2023, elder fraud complaints increased by 14%, with corresponding losses rising by 11% [2].
“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.”
“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.
