Financial Exploitation Prevention Act of 2023

Floor Speech

I rise in support of H.R. 500, the Financial Exploitation Prevention Act of 2023, sponsored by the gentlewoman from Missouri (Mrs. Wagner).

Adults over the age of 65 are too often the target of financial exploitation and have become victims of financial crimes more than any other demographic.

In the annual report on elder fraud and abuse, the Department of Justice reported that, in 2020 alone, seniors suffered over $1 billion in financial losses due to fraud.

Unlike other adults, seniors are often dependent on their savings to support them in retirement, making it much more difficult for them to recover from incidents of fraud.

Brokers and investment managers, who often stand in as the stewards of the savings of seniors, are in a unique position to protect elders from financial crimes.

In 2018, the Securities and Exchange Commission released a letter called a no-action letter stating that the Commission would not take enforcement action against the agents of an investment company, including mutual funds, if the person paused a payment or redemption based on the suspicion of financial exploitation.

This pause on cashing out the savings of a senior provides a necessary safeguard to ensure that the redemption is consistent with the will of the senior.

H.R. 500 would codify this SEC letter. It would also make two further changes to describe how a mutual fund adviser can establish the process at each fund to protect seniors.

I thank Mrs. Wagner for working with my staff to craft the language in this bill. This is a helpful piece of legislation that will provide one more tool to market participants to protect investors and, in particular, our Nation's retirees.

Mr. Speaker, this legislation passed with bipartisan support last Congress, and I urge my colleagues to once again support this bill.

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Ms. WATERS. Mr. Speaker,

H.R. 500 is a helpful piece of legislation that will support our Nation's seniors as they seek to fund their retirement.

Investment advisers and brokers want to do the right thing to stop fraud when they see it, and this bill will ensure they are able to do so.

The bill is supported by the Consumer Federation of America, the North American Securities Administrators Association, and Public Citizen.

Mr. Speaker, I urge all Members to support this bill, and I yield back the balance of my time.

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