Congresswoman Ann Wagner Introduces Legislation To Protect Seniors From Financial Exploitation

Congresswoman Ann Wagner (R-MO), Chair of the Financial Services subcommittee on Capital Markets, released the following statement after she introduced the Financial Exploitation Prevention Act.

 "I have had too many heartbreaking conversations with seniors and their families who have had to deal with the tragic aftermath of financial exploitation. Seniors are often the victim of serious financial crimes and the mental toll of knowing you were coerced or deceived can be devastating. Oftentimes the victims are on a fixed income, and it can be extremely hard to recover from the shocking financial loss. After having seen the impact these types of fraud and deception can have on our senior communities in Missouri, I knew we needed to create a tool that would help them be better protected from financial abuse and exploitation. My legislation would help protect our seniors from having their hard-earned money taken from them by implementing a buffer between financial transactions if fraud is suspected."

The Financial Exploitation Prevention Act would give the financial industry better tools to address suspected financial exploitation and abuse of seniors and those with mental and physical disabilities. First, the bill requires the Securities and Exchange Commission to report to Congress on recommendations for legislative and regulatory changes on how to combat financial exploitation of seniors and vulnerable adults. Second, the bill permits a registered open-end investment company or transfer agent for that company, including mutual funds, to better protect seniors by delaying the redemption period of any redeemable security if it was reasonably believed that such redemption was requested through the financial exploitation of a security holder who is a senior or an individual unable to protect their own interests.

Over the next 10+ years, 10,000 Americans will turn 65 every day, with seniors making up 18% of the nation’s population by 2030. As more investors age into retirement, their risk of exploitation increases. Currently, about 1 in 5 senior investors are victimized by financial fraud, and those investors lose an estimated $2.9 billion annually in reported cases.