Fidelity offers service to combat elder financial abuse

Fidelity offers service to combat elder financial abuse
The firm's clearing and custody division is partnering with EverSafe to help advisers protect senior clients from fraud.
JAN 21, 2016
Fidelity Investments' clearing and custody unit is offering a new service to advisers to help them curtail elder financial abuse, seizing on a dialogue that's been ramping up among regulators and policymakers. As part of the new service, Fidelity Clearing & Custody is partnering with EverSafe, which monitors seniors' financial accounts and credit reports and provides alerts of any suspicious activity. Fidelity's program is meant to address a prevailing trend in the U.S., according to David Canter, executive vice president of practice management and consulting at Fidelity Clearing & Custody. Approximately 10,000 baby boomers will turn 65 every day through the year 2030. “You can't ignore the demographics. There's literally a tidal wave of baby boomers entering the ranks of 65 and older on a daily basis,” Mr. Canter said. “It's really the coming of age of the baby boomers, and that made us pay particular attention.” When clients' bank, credit card and investment accounts are linked in EverSafe's program, the firm reviews the last 90 days of history for suspicious activity and scans accounts daily thereafter. Fidelity is offering EverSafe access to advisers at a 20% discount on the monthly subscription fee, which ranges from $7.99 to $22.99 based on different service levels. Some advisers are considering bundling the service into their advisory offering, absorbing the cost as part of a more holistic package, Mr. Canter said. Advisers also would have access to Fidelity's educational materials such as white papers on elder financial abuse. The issue of elder financial abuse has gained prominence among legislators and regulators as well. Two senators, Susan Collins, R-Maine, and Claire McCaskill, D-Mo., introduced bipartisan legislation last month to cut down on elder financial abuse. The Senior$afe Act of 2015 would encourage advisers and financial institutions to report financial fraud directed at seniors. According to the National Adult Protective Services Association, only one in 44 cases of elder financial abuse is ever reported. Yet one out of every five advisers has seen elder abuse among their older clientele, according to a new Fidelity survey. Elder financial abuse is responsible for $2.9 billion in annual losses, according to the MetLife Mature Market Institute. In September, the Financial Industry Regulatory Authority Inc.'s board of governors authorized the regulator to issue a proposal on elder financial abuse. As part of the proposal, broker-dealers could freeze accounts of the senior investors if there's suspicion of fraud. The North American Securities Administrators Association also proposed model state legislation in September that would mandate disclosure of potential fraud to state regulators and adult protective services, and would allow for delay of fund disbursement for potential victims.

Latest News

NASAA moves to let state RIAs use client testimonials, aligning with SEC rule
NASAA moves to let state RIAs use client testimonials, aligning with SEC rule

A new proposal could end the ban on promoting client reviews in states like California and Connecticut, giving state-registered advisors a level playing field with their SEC-registered peers.

UBS sees a net loss of 111 financial advisors in the Americas during the second quarter
UBS sees a net loss of 111 financial advisors in the Americas during the second quarter

Some in the industry say that more UBS financial advisors this year will be heading for the exits.

JPMorgan reopens fight with fintechs, crypto over fees for customer data
JPMorgan reopens fight with fintechs, crypto over fees for customer data

The Wall Street giant has blasted data middlemen as digital freeloaders, but tech firms and consumer advocates are pushing back.

The average retiree is facing $173K in health care costs, Fidelity says
The average retiree is facing $173K in health care costs, Fidelity says

Research reveals a 4% year-on-year increase in expenses that one in five Americans, including one-quarter of Gen Xers, say they have not planned for.

Advisor moves: NY-based Coastline wealth adds three teams with over $430M in assets
Advisor moves: NY-based Coastline wealth adds three teams with over $430M in assets

Raymond James also lured another ex-Edward Jones advisor in South Carolina, while LPL welcomed a mother-and-son team from Edward Jones and Thrivent.

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.