NASAA supports senior investor protection acts

Two bills aimed at protecting seniors from financial fraud were introduced in the House today, winning praise from the North American Securities Administrators Association Inc. Sens. Herbert Kohl, D-Wis., Robert Casey, D-Penn., and Kirsten Gillibrand, D-N.Y., introduced the Senior Investment Protection Act (S. 1661) and the Senior Investor Protection Enhancement Act (S. 1659/ H.R. 3550). The House version of the bills was introduced by Reps. Paul Hodes, D-N.H., and Gwen Moore, D-Wis. The Senior Investment Protection Act focuses on the misleading use of senior and retiree designations. It would give grants to states to target investment professionals falsely claiming expertise in senior financial issues by using false or misleading titles. The bill includes a provision that would impose a suitability standard on insurance professionals recommending insurance products to seniors. The Senior Investor Protection Enhancement Act increases penalties for the violation of securities laws involving seniors and strengthens regulators’ and law enforcement’s authority to penalize those who egregiously exploit the financial circumstances of seniors. The bills “spotlight the growing threat of elder financial abuse and take steps to protect our nation’s seniors,” NASAA president and Colorado Securities Commissioner Fred Joseph said in a statement. “These two bills will … protect every investor, especially seniors, who are most vulnerable to fraud and abuse.”