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.
