Wagner Legislation to Protect Seniors from Financial Exploitation Unanimously Approved by House Financial Services Committee

Washington, D.C. - Congresswoman Ann Wagner (R-MO), Chair of the House Financial Services Subcommittee on Capital Markets, released the following statement after her Financial Exploitation Prevention Act was unanimously approved by the Financial Services Committee:

"We are facing a growing crisis that is often hidden in plain sight: the financial exploitation of our most vulnerable citizens. This issue affects millions, robbing them of their life savings and sense of security. For too long, the financial industry has been limited in its ability to combat this insidious crime. My Financial Exploitation Prevention Act empowers the people who are in the best position to intervene and stop financial abuse before it's too late. Crucially, it allows financial institutions to temporarily delay a transaction if they have a reasonable belief that it is the result of financial exploitation. Tools like this will help better protect those who are 65 or older, as well as those with mental or physical impairments who are unable to protect their own interests. I am grateful the full Committee passed this legislation today, and I look forward to the House as a whole taking this up."

Background

The Financial Exploitation Prevention Act would give the financial industry better tools to address suspected financial exploitation and abuse of seniors and those with mental and physical disabilities. First, the bill requires the Securities and Exchange Commission to report to Congress on recommendations for legislative and regulatory changes on how to combat financial exploitation of seniors and vulnerable adults. Second, the bill permits a registered open-end investment company or transfer agent for that company, 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.

Seniors aged 65 and over will make up 18% of the U.S. population by 2030. As more investors age into retirement, their risk of exploitation increases. According to a 2023 AARP report, Americans age 60 and older lose an estimated $28.3 billion annually due to financial exploitation.