Clinic Comments on Proposed Model Act to Protect Vulnerable Adults from Financial Exploitation

On October 29, 2015, the Investor Advocacy Clinic commented on the North American Securities Administrators Association’s (NASAA) Proposed Model Act to Protect Vulnerable Adults from Financial Exploitation. The Proposed Model Act, available here, aims to protect vulnerable adults from financial exploitation by mandating thatcertain financial services providers and compliance personnel (“qualified employees”) report suspected exploitation to adult protective services and securities commissioners.  The Model Act would also allow such qualified employees to delay certain suspected fraudulent disbursements.

The Clinic’s comment, available in full here, supported the Proposed Model Act because it protects vulnerable adults from financial exploitation.  The Clinic suggested two amendments to increase the protection of vulnerable adults from financial exploitation and increase its effaciacy.  First, the Clinic believes that the Model Act should require education and training on the red flags of financial exploitation for qualified employees to ensure that they report in appropriate circumstances.  Second, the Clinic believes that the Model Act’s coverage of seniors should begin at the age of 65 instead of 60 so that the Model Act is not inconsistent with pre-existing similar statutes.

The Investor Advocacy Clinic represents the voice of small retail investors.  In addition to providing legal representation of small investors who have claims against their brokers, the Investor Advocacy Clinic evaluates and comments on proposed rules that impact the small investor and engages in educational outreach for investors and professionals who work with investors.