Texas law helps financial advisors combat elder financial abuse

In a column published in the Dallas Morning News, NAIFA-Texas President Joseph Orr II says financial advisors are often the first to note the warning signs that a senior citizen could be victim of a financial scam. For one, life savings begin to drain away.

“With people age 50 or older controlling more than 70 percent of the nation’s wealth, today’s scammers are more sophisticated than ever before,” writes Orr. “Until now, there was little (financial professionals) could do to act in Texas.

In September, the Elder Financial Protection Act took effect in Texas. The law sets new standards to combat financial scams and abuse of senior citizens, and it enables others, including financial advisers, to step forward when they see something is amiss.

“With this new law, financial advisors become the first line of defense against the scammer,” Orr writes. “They have an objective perspective of an individual's financial condition and can see the early signs of financial abuse.” Orr also was interviewed for a story that appeared on CBS 4 in El Paso.

NAIFA supports state legislation intended to protect seniors and other vulnerable adults from financial fraud and exploitation provided that it contains certain provisions, including: a voluntary, not mandatory, reporting process; advisors are permitted to report suspected financial exploitation of a senior client to their firms, rather than directly to authorities; and a legal “safe harbor” provision for advisors who report suspected financial exploitation.
 
  • Posted November 6, 2017 IN
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Comments
Finance
The passage of Elder Financial Protection Act is really nice step to protect the financial abuse against senior citizen. I agree with the President. The responsibility of Financial advisers is clearly marked in this act. It's a good provision. Now better implementation of this act is equally important.
11/15/2017 10:55:28 PM