Senators Ruben Gallego (D-AZ) and Bill Hagerty (R-TN) are introducing bipartisan legislation to crack down on the financial exploitation of seniors and the disabled.
Specifically, Sen. Gallego's Financial Exploitation Prevention Act gives registered open-end investment companies (or a transfer agent aligned with it, including mutual funds) to better protect seniors by delaying the redemption period of any redeemable security if it was reasonably believed that such redemption was requested through the financial exploitation of a security holder who is a senior or an individual unable to protect their own interests.
Additionally, the Securities and Exchange Commission (SEC) will be required to annually report to Congress on recommendations for legislative and regulatory changes on how to combat financial exploitation of seniors and vulnerable adults.
"Far too many Arizona seniors fall victim to scammers who target their hard-earned life savings," Sen. Gallego said in a statement. "Once the money is gone from their accounts, it's almost impossible to get back." The Arizona Democrat went on to praise the bill, noting that it would "strengthen the financial industry's banks' ability to step in when they suspect fraud and give seniors a critical safeguard against bad actors."
Sen. Hagerty echoed his remarks, commenting that "older Americans are being exploited through financial scams, losing billions of dollars each year." I'm pleased to reintroduce this legislation with Senator Gallego to provide financial professionals the ability to address the growing issue of financial exploitation and abuse of vulnerable investors," he added.
The Arizona and Tennessee Senators had previously teamed up in April to reintroduce the Innovate to De-Escalate Act, which removes an excise tax equally applied to non-lethal projectile weapons and conventional firearms by clarifying that Tasers and other devices are not firearms under the definitions set in the National Firearms Act of 1934 or the Gun Control Act of 1968.
By easing the tax burden, innovators are more able to expand the production of non-lethal police weaponry, as the police use of deadly force has come under scrutiny in recent years.
