Bill > S2840

This bill amends the Investment Company Act of 1940 to provide additional protections for older and vulnerable adults against financial exploitation in investment accounts. Specifically, it allows registered open-end investment companies and their transfer agents to voluntarily elect to implement new safeguards for direct-at-fund accounts. These safeguards include requesting a contact person from the account holder, documenting that contact information, and disclosing that the company may reach out to that contact if they suspect financial exploitation. The bill enables these companies to temporarily postpone redemption of securities (up to 20 business days) if they reasonably believe a specified adult (defined as someone 65 or older, or with a mental or physical impairment) is experiencing or at risk of financial exploitation. Companies must follow specific procedures during this postponement, such as initiating an internal review, notifying the account holder's designated contact (with some exceptions), and maintaining detailed records of these actions. Additionally, the bill requires the Securities and Exchange Commission to submit recommendations to Congress within one year, in consultation with various financial regulatory agencies, about further legislative and regulatory changes to protect vulnerable adults from financial exploitation.

Housing and Urban Affairs

https://www.congress.gov/bill/119th-congress/senate-bill/2840/all-info