Texas legislature passes law protecting seniors from financial abuse

Once signed by governor, law will allow banks and securities firms not to process questionable transactions

May 24, 2017 @ 12:27 pm

By InvestmentNews

+ Zoom

A law making it more difficult to exploit seniors financially has passed both houses of the Texas Legislature and is on its way to the governor for signature.

House Bill 3921 gives banks and securities firms the authority to place a temporary "hold" on suspicious transactions in an elderly or disabled person's account. It is designed to bolster fraud protection procedures already in place at most banks, said Jordan Taylor, a spokeswoman for Tan Parker, the representative who sponsored the bill with state senator Kelly Hancock.

The law will allow banks and other financial firms to scrutinize any type of large, unusual transaction in a senior citizen's account before it's processed.

"By allowing banks and securities firms to place temporary holds on suspicious transactions, the legislature is giving them a powerful tool to stop elder financial exploitation in its tracks," AARP said in a release.

"We are one step closer to better protecting seniors from predators while ensuring financial services professionals do not inadvertently violate privacy laws," said Dale Brown, president and CEO of the Financial Services Institute, an independent broker-dealer trade group that supported passage of the bill.

0
Comments

What do you think?

View comments

Recommended for you

Featured video

Events

How NextGen talent is impacting financial services

Nextgen talent brings a diverse perspective and unique skills to the industry. Find out why two Utah Valley University students are so excited to make a difference.

Video Spotlight

Will It Last As Long As Your Clients Do?

Sponsored by Prudential

Video Spotlight

The Catalyst

Sponsored by Pershing

Latest news & opinion

Labor's Alexander Acosta and SEC's Jay Clayton tell lawmakers they will work together on fiduciary rule

In separate appearances before Senate panels, the regulators stressed the cooperation that Republican legislators and opponents of the DOL fiduciary rule are demanding.

Brian Block denies cooking the books at Schorsch REIT

Former CFO claims everything he did was 'appropriate' and 'correct.'

Interns will take on several roles at advisory firms this summer

College students are helping with client prep, firm visioning and long-term projects, among other duties.

10 funds with largest 3-year outflows

Even well-managed funds that have beaten the S&P 500’s 10.1% average annual gain have watched investors flee.

Wirehouse training programs are back

At one time, major brokerage houses ran large, expensive training programs for thousands of young brokers, and now it looks as if they are about to return to that model.

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print