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 charges Chicago-based investment adviser with overbilling clients more than $2.5M in fees
SEC charges Chicago-based investment adviser with overbilling clients more than $2.5M in fees

Eliseo Prisno, a former Merrill advisor, allegedly collected unapproved fees from Filipino clients by secretly accessing their accounts at two separate brokerages.

Apella Wealth comes to Washington with Independence Wealth Advisors
Apella Wealth comes to Washington with Independence Wealth Advisors

The Harford, Connecticut-based RIA is expanding into a new market in the mid-Atlantic region while crossing another billion-dollar milestone.

Citi's Sieg sees rich clients pivoting from US to UK
Citi's Sieg sees rich clients pivoting from US to UK

The Wall Street giant's global wealth head says affluent clients are shifting away from America amid growing fallout from President Donald Trump's hardline politics.

US employment report reactions: Overall better than expected, but concerns with underlying data
US employment report reactions: Overall better than expected, but concerns with underlying data

Chief economists, advisors, and chief investment officers share their reactions to the June US employment report.

Creative Planning's Peter Mallouk slams 'offensive' congressional stock trading
Creative Planning's Peter Mallouk slams 'offensive' congressional stock trading

"This shouldn’t be hard to ban, but neither party will do it. So offensive to the people they serve," RIA titan Peter Mallouk said in a post that referenced Nancy Pelosi's reported stock gains.

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.