Wagner, Gottheimer Reintroduce Legislation to Protect Seniors from Financial Exploitation

Washington, D.C. – Congresswoman Ann Wagner (MO-02), Chair of the Financial Services Subcommittee on Capital Markets, and Congressman Josh Gottheimer (D-NJ) released the following statement after they reintroduced the Financial Exploitation Prevention Act:

“Seniors in our community can be particularly vulnerable to scammers and other bad actors seeking to take advantage of them. The last thing they need after a lifetime saving for retirement is for their hard-earned investments to be stolen from them, and that’s why I reintroduced the Financial Exploitation Prevention Act,” said Congresswoman Ann Wagner (MO-2), Chair of the Financial Services Subcommittee on Capital Markets.  “This legislation will provide essential protections for seniors and ensure their retirement accounts are safe when they need them most.”

“Millions of seniors across the country, including my own mother, have been the victims of financial scams, and far too many have been cheated out of their hard-earned retirement savings. It’s appalling, it’s offensive, and it’s unacceptable,” said Congressman Josh Gottheimer (NJ-5), a member of the House Financial Services Committee. “That’s why I’m proud to co-lead the bipartisan Financial Exploitation Prevention Act, which will take senior fraud and scams head-on by equipping the financial industry with better tools to protect our seniors. We must do everything in our power to stop bad actors from preying on our most vulnerable and ensure seniors can retire with dignity.”

Background

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.

Seniors aged 65 and over will make up 18% of the U.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 these investors lose an estimated $3.4 billion per year as a result of financial exploitation.