Grygo is the chief content officer for FTF & FTF News.
Among the most troubling issues that FTF News reports upon via our enforcement stories is the sad truth that a lot of very bad people prey upon the elderly to steal their life savings via securities trading scams.
To help combat this problem, three key organizations for the securities industry — FINRA, the SEC, and the North American Securities Administrators Association (NASAA) — are taking steps to help securities firms become more proactive in the protection of seniors. Their efforts are in honor of World Elder Abuse Awareness Day (which was June 15).
The three organizations are rallying together to offer free training and resources to securities firms to help them detect, prevent, and report upon the ongoing financial exploitation of senior citizens.
With this initiative, the SEC, FINRA, and NASAA are helping implement the training requirements of the Senior Safe Act, which is part of Section 303 of the Economic Growth, Regulatory Relief, and Consumer Protection Act, signed into law on May 24, 2018, officials note. (NASAA’s U.S. members oversee the implementation of securities laws at the state level.)
The three organizations want the program, dubbed “Addressing and Reporting Financial Exploitation of Senior and Vulnerable Adult Investors,” to help firms train associated persons so that they can suss out possible exploitation of senior and vulnerable adult investors. “The presentation serves as a resource for firms implementing the requirements of the Senior Safe Act and certain state training requirements relating to senior investment protection,” officials say.
The Senior Safe Act “protects ‘covered financial institutions’ – which include investment advisers, broker-dealers, and transfer agents – and their eligible employees, affiliated persons, and associated persons from liability in any civil or administrative proceeding for reporting a case of potential exploitation of a senior citizen to a covered agency,” officials add.
“The immunity established by the Act is provided on the condition that employees receive training on how to identify and report exploitative activity against seniors before making a report. In addition, reports of suspected exploitation must be made ‘in good faith’ and ‘with reasonable care.’ This immunity applies to both individuals and firms,” according to a statement from the three organizations.
Here are some useful links:
- FINRA’s training presentation can be found on its website here: https://bit.ly/3gD2W2N and the related PDF can be found here https://bit.ly/3iKgcW4 ;
- And NASAA offers help here https://bit.ly/3wvxOt0 and here: https://bit.ly/3wtrQsp
The SEC’s website also offers resources here: https://bit.ly/3wsJSLq “The SEC also strongly encourages all investors to utilize the education resources on sec.gov to ensure they are working with a registered investment professional,” adds SEC Chair Gary Gensler in a prepared statement.
Need a Reprint?