Gov. Murphy signs Safeguarding Against Financial Exploitation Act to Protect Elders
According to news reports this week, New Jersey is the latest state to pass a law to better protect senior citizens from financial exploitation.
This comes after a study published by MetLife Mature Market Institute in 2019 estimating the financial loss by victims of elder financial crimes and exploitation at more than $2.9 billion dollars annually.
Under the new law signed by Gov. Phil Murphy, a qualified individual who reasonably believes that financial exploitation of an eligible adult has occurred would be required to notify the Bureau of Securities as well as any applicable county adult protective services provider.
Any agent, investment adviser representative or other person that serves in a supervisory, compliance, or legal capacity for a broker-dealer or investment advisor is considered a “qualified individual.”
The National Association of Insurance and Financial Advisors’ New Jersey chapter were reportedly proponents for the new law.
Further, the new law also allows a broker-dealer or investment advisor to delay disbursement from an eligible adult’s account if it may result in financial exploitation. This will reportedly protect the broker-dealer or investment advisor from any administrative or civil liability.
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