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Congress passes Financial Exploitation Prevention Act; Who will benefit from it?
Blogging Big Blue
The Financial Exploitation Prevention Act of 2023, introduced by Rep. Ann Wagner, R-Mo., Chairwoman of the House Financial Services Subcommittee on Capital Markets, was approved by the House late on Monday, to protect seniors by establishing “a buffer between financial transactions if fraud is suspected.”
What Is Financial Exploitation Prevention Act?
After the vote, Eric Pan, president and CEO of the Investment Company Institute in Washington, stated in a statement that the law was passed “would enable mutual funds and their transfer agents to better protect seniors by delaying the redemption of securities if there is a reasonable belief that financial exploitation has occurred.”
The bill allows the corporation to delay redemption for up to 15 days at first, and then for an additional 10 days if financial exploitation is discovered.