Advisers should get behind a bill to strengthen senior financial protection

Advisers should get behind a bill to strengthen senior financial protection
Push by advisers could help tug this needed legislation out of the doldrums and on to the president's desk.
JUN 30, 2016
Sen. Susan Collins of Maine needs help to push her bill to strengthen protections against senior financial abuse through the U.S. Senate and House of Representatives. The bill would provide liability protection for financial industry workers and their firms for notifying appropriate agencies when they suspect elderly clients have been targeted or hurt by a scam. However, though there is no apparent opposition in either house of Congress, the bill has been stuck since it was introduced last fall with seven bi-partisan co-sponsors. This is a bill financial advisers and financial planners should get behind by sending messages to their representatives in Congress, urging them to pass it. They could also contact their state regulators and urge them to get behind the efforts to get it passed. (Related editorial: Time for Congress to act on elder abuse)

PRIME TARGETS

Studies have shown that the elderly have become a prime target of scams or misappropriation, with a cost to them well in excess of $2.9 billion annually. There are many opportunities for financial abuse of the elderly. Staff at care facilities can cozy up to residents to get jewelry, money or power of attorney. Sometimes family members think they are entitled to their parents' or grandparents' money and find ways to take it. Con artists often prey on seniors, who as a group control up to 70% of the nation's personal wealth, and often are in poor health physically and mentally, making them easy targets for financial predators. In December the Financial Industry Regulatory Authority Inc. issued a report on elder financial abuse which revealed that its Helpline for senior investors with questions and concerns had led to the recovery of almost $750,000 in voluntary reimbursements from firms to individual clients since May 2015. It also outlined practices firms should implement to protect seniors. A push by financial advisers could help tug this needed legislation out of the doldrums and on to the president's desk for his signature before the end of the year. It would help protect them, while they protect their senior clients.

Latest News

SEC bars ex-broker who sold clients phony private equity fund
SEC bars ex-broker who sold clients phony private equity fund

Rajesh Markan earlier this year pleaded guilty to one count of criminal fraud related to his sale of fake investments to 10 clients totaling $2.9 million.

The key to attracting and retaining the next generation of advisors? Client-focused training
The key to attracting and retaining the next generation of advisors? Client-focused training

From building trust to steering through emotions and responding to client challenges, new advisors need human skills to shape the future of the advice industry.

Chuck Roberts, ex-star at Stifel, barred from the securities industry
Chuck Roberts, ex-star at Stifel, barred from the securities industry

"The outcome is correct, but it's disappointing that FINRA had ample opportunity to investigate the merits of clients' allegations in these claims, including the testimony in the three investor arbitrations with hearings," Jeff Erez, a plaintiff's attorney representing a large portion of the Stifel clients, said.

SEC to weigh ‘innovation exception’ tied to crypto, Atkins says
SEC to weigh ‘innovation exception’ tied to crypto, Atkins says

Chair also praised the passage of stablecoin legislation this week.

Brooklyn-based Maridea snaps up former LPL affiliate to expand in the Midwest
Brooklyn-based Maridea snaps up former LPL affiliate to expand in the Midwest

Maridea Wealth Management's deal in Chicago, Illinois is its first after securing a strategic investment in April.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.