NAIFA Joins U.N. in Raising Awareness of Elder Abuse Around the Globe

In efforts to underscore the importance of preventing financial exploitation of the senior population, NAIFA joins the United Nations General Assembly in recognizing June 15 as World Elder Abuse Awareness Day.  The U.N. describes June 15 as, “the one day in the year when the whole world voices its opposition to the abuse and suffering inflicted to some of our older generations.”
“For well over a century, thousands of dedicated NAIFA members have helped individuals and families reach their financial goals, and occasionally spot suspicious activities,” said NAIFA President Paul Dougherty. “Advisors can play a critical role in protecting their senior clients from financial exploitation. NAIFA strongly supports efforts at the federal and state level to protect seniors from losing their critical assets.”
Examples of activity to protect seniors at the state and federal level:
At the federal level, NAIFA supports the efforts of Sen. Susan Collins (R – Maine), who introduced the Senior$afe Act of 2017 (S. 223). The legislation would allow insurance and financial advisors to report suspected cases of financial fraud involving senior clients to financial institutions, which could then pass the suspicious activity along to the authorities. NAIFA worked closely with members of Congress on this bipartisan bill to ensure that it included necessary liability protections for advisors working in good faith to protect their clients.

NAIFA supports a new FINRA regulation (#15-37) approved by the SEC that permits the broker-dealer or investment advisor to place a temporary delay (15 days) on a client’s disbursement request if the firm suspects that financial exploitation may be involved.  The FINRA rule also provides firms with immunity from liability for placing a hold in accordance with the rule.  

NAIFA supports legislation in the states that would permit financial advisors to report suspected financial exploitation of a senior client to state authorities, allow the financial firms to temporarily delay executing the client’s disbursement request if the firm believes that the client may about to become a victim of financial exploitation, and gives advisors and firms immunity from civil and administrative liability for reporting suspicious activity and delaying a potentially fraudulent transaction.  Legislation supported by NAIFA has been enacted in a number of states, including Louisiana, Missouri, Montana, Colorado, Texas and Tennessee.

NAIFA also supports efforts by the state insurance commissions to protect seniors, including the NAIC’s Model Regulation on the Use of Senior Specific Certifications and Professional Designations in the Sale of Life Insurance and Annuities, and the NAIC Bulletins warning seniors on the improper use of designations and “free lunch” seminars
  • Posted June 15, 2017 IN

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