One year after the passage of The Senior Safe Act, multiple organizations have jointly issued a fact sheet to “help raise awareness among broker-dealers, investment advisers, and transfer agents of the Act and how the Act’s immunity provisions work.”About the Senior Safe Act
The Senior Safe Act became federal law in May, 2018. It offers financial institutions and certain employees “immunity from liability in any civil or administrative proceeding for reporting potential exploitation of a senior citizen.” This is relevant when a firm or employee wants to report exploitation of a senior, but doesn’t want to violate a privacy requirement.
The Act does not require any actions that have to be taken by financial institutions or regulators. But to be eligible for immunity, employees have to receive training on identifying and reporting exploitative activity against seniors. Also, reports have to be made “in good faith” and “with reasonable care.”
Employees eligible for immunity under the Senior Safe Act:
- An employee who serves as supervisor or in compliance or legal function (including as a Bank Secrecy Act officer), for a covered financial institution; OR
- A registered representative, investment adviser representative, or insurance producer affiliated or associated with a covered financial institution.
The Senior Safe Act Fact Sheet was issued by the Financial Industry Regulatory Authority (FINRA), the North American Securities Administrators Association (NASAA), and the Securities and Exchange Commission (SEC).
“Financial professionals can provide a critical frontline role in identifying and reporting senior financial exploitation. The SEC strongly encourages broker-dealers and investment advisers to train their personnel in accordance with the Senior Safe Act. We also encourage all investors, including our most vulnerable, to ensure they are dealing with a registered investment professional.” SEC Chairman Jay Clayton.Seniors a Common Target for Financial Abuse
Unfortunately, seniors have long been the target of financial abuse. The SEC recently brought charges against a New York-based boiler room that defrauded elderly and unsophisticated investors. In 2018, the SEC uncovered a Ponzi scheme based in Texas that targeted the elderly. And there are many other scams that are commonly aimed at seniors.
Should you or a loved one require the assistance of an experienced professional to help you evaluate your unique situation, trust the elder financial fraud attorneys at Silver Law Group.
Silver Law Group is a nationally-recognized securities law firm headquartered in South Florida representing investors worldwide with their claims for losses due to securities and investment fraud. Our elder fraud attorneys can meet you in your home or other convenient location. We have extensive experience representing investors in elder financial fraud matters including claims against stockbrokers, financial advisors, and other claims for senior financial abuse. The firm has successfully recovered multi-million dollar awards for its clients through securities arbitration and the courts. To contact Scott L. Silver to discuss your legal matter, call toll-free (800) 975-4345 or e-mail him at SSilver@silverlaw.com.