New model act from national organization hopes to end financial exploitation of seniors
Tennessee hopes new guidelines from a national organization can help in preventing the financial exploitation of people 65 and older, or people who have an increased risk for diminished capacity or other cognitive impairments.
The Tennessee Department of Commerce & Insurance's (TDCI) Securities Division hopes the state legislature will pass a new model act from the North American Securities Administrators Association (NASAA).
The “Act to Protect Vulnerable Adults from Financial Exploitation” is a set of guidelines that NASAA hopes will “tackle a wide range of challenges confronting senior investors, regulators and securities industry professionals.”
In order for the model act to work in Tennessee, the state legislature will have to adopt the guidelines as law.
The act would help address several points of concern, like requiring records from brokers or advisers to provide records that could show suspected or attempted fraud and gives the brokers or advisers immunity for withholding disbursements if they suspect exploitation may be happening.
If enacted, the model act would only apply to people 65 or older and individuals who qualify for protection under a state adult protective services statute.