PHOENIX – This week, a bill passed by the Arizona Legislature, SB1483, went into effect, allowing securities dealers and investment advisory firms to report suspected or attempted financial exploitation of a vulnerable adult and delay such a disbursement or transaction.
The new law enables the firms to impose an initial delay of disbursements from an eligible adult’s account for up to 15 business days if financial exploitation is suspected. The firms are required to report the delay within two business days to the Commission or the Department of Economic Security – Adult Protective Services (“APS”), who can extend the delay for an additional 10 days or longer.
If additional delay is needed, a court can extend the time. The law also provides immunity from administrative or civil liability to qualified individuals for taking actions permitted under the act.
According to the 2010 Investor Protection Trust Elder Fraud Survey, one out of every five citizens over the age of 65 has been victimized by a financial fraud. The new law seeks to help protect individuals who are over 65 years old or who are unable to protect themselves from abuse, neglect or exploitation by others because of a physical or mental impairment.
“Protecting senior investors has long been a top priority for the Corporation Commission,” said Arizona Corporation Commission Chairman Bob Burns. “Early detection and reporting of financial exploitation are critical to help prevent elder financial abuse and the devastating financial and emotional impacts that ensue.”
The Arizona Corporation Commission set up a page on its website to provide information of the new law and to receive complaints. The page can be found at https://azcc.gov/securities/investor-complaints-and-reporting/reporting-financial-exploitation-of-a-vulnerable-adult.