Texas legislature passes law protecting seniors from financial abuse

Once signed by governor, law will allow banks and securities firms not to process questionable transactions.
MAY 24, 2017

A law making it more difficult to exploit seniors financially has passed both houses of the Texas Legislature and is on its way to the governor for signature. House Bill 3921 gives banks and securities firms the authority to place a temporary "hold" on suspicious transactions in an elderly or disabled person's account. It is designed to bolster fraud protection procedures already in place at most banks, said Jordan Taylor, a spokeswoman for Tan Parker, the representative who sponsored the bill with state senator Kelly Hancock. The law will allow banks and other financial firms to scrutinize any type of large, unusual transaction in a senior citizen's account before it's processed. "By allowing banks and securities firms to place temporary holds on suspicious transactions, the legislature is giving them a powerful tool to stop elder financial exploitation in its tracks," AARP said in a release. "We are one step closer to better protecting seniors from predators while ensuring financial services professionals do not inadvertently violate privacy laws," said Dale Brown, president and CEO of the Financial Services Institute, an independent broker-dealer trade group that supported passage of the bill.

Latest News

Edward Jones facing more race bias claims in new lawsuit
Edward Jones facing more race bias claims in new lawsuit

A private partnership, Edward Jones is a giant in the retail brokerage industry with more than 20,000 financial advisors.

Advisor moves: LPL recruitment momentum continues with $815M Northwestern Mutual team
Advisor moves: LPL recruitment momentum continues with $815M Northwestern Mutual team

Meanwhile, Raymond James and Tritonpoint Partners separately welcomed father-son teams, including a breakaway from UBS in Missouri.

SEC chief Atkins signals caution on prediction market ETFs amid broader rethink of novel fund structures
SEC chief Atkins signals caution on prediction market ETFs amid broader rethink of novel fund structures

Paul Atkins has asked staff to solicit public comment on novel ETFs, pausing the clock on as many as 24 filings linked to the booming event contracts market.

Private capital's $1 trillion bet on the American retirement account
Private capital's $1 trillion bet on the American retirement account

From 401(k)s to retail funds, Deloitte sees private equity and credit crossing into mainstream investing on two fronts at once.

Advisor moves: Wells Fargo Advisors pulls in $9.6b in fresh talent during first half of May
Advisor moves: Wells Fargo Advisors pulls in $9.6b in fresh talent during first half of May

Big-name defections from Morgan Stanley, UBS, and Merrill Lynch headline a busy two weeks of recruiting for the wirehouse.

SPONSORED Are hedge funds the missing ingredient?

Wellington explores how multi strategy hedge funds may enhance diversification

SPONSORED Beyond wealth management: Why the future of advice is becoming more human

As technical expertise becomes increasingly commoditized, advisors who can integrate strategy, relationships, and specialized expertise into a cohesive client experience will define the next era of wealth management