Bill > HR2478

This bill amends the Investment Company Act of 1940 to provide additional protections for vulnerable adults against financial exploitation in investment accounts. Specifically, registered open-end investment companies and their transfer agents can elect to implement new safeguards for non-institutional direct-at-fund accounts, including requesting contact information for a trusted individual who can be notified about potential financial abuse. The bill allows these financial institutions to postpone redemption of securities for up to 15 business days (with a possible 10-day extension) if they reasonably believe a specified adult is experiencing financial exploitation. A "specified adult" is defined as someone 65 or older or an individual 18 or older with a mental or physical impairment that prevents them from protecting their own interests. The bill also requires financial institutions to establish internal procedures for identifying and reporting potential financial exploitation, including documenting and retaining records of any postponement or investigation. Additionally, the Securities and Exchange Commission is required to submit a report to Congress within one year, consulting with various financial regulatory bodies, to recommend further regulatory and legislative changes to address financial exploitation of vulnerable adults.

Business and Industry

https://www.congress.gov/bill/119th-congress/house-bill/2478/all-info