FYI: The SEC’s Office of the Investor Advocate has issued a paper entitled “How the SEC Works to Protect Senior Investors,” describing what the SEC is doing to protect senior investors, especially in the areas of investor education, regulatory examinations and enforcement.
The paper is well worth a read by anyone interested in compliance relating to seniors, as it summarizes work in the area not only by the SEC, but also by FINRA (for example, FINRA Rule 2165 on Financial Exploitation of Specified Adults) and the states (for example, the NASAA Model Act to Protect Vulnerable Adults from Financial Exploitation, some version of which has now been put into place in 21 states, according to the paper). The paper also helpfully describes the key similarities and differences in those various regulations.
Of special interest in the paper is Section Six entitled “Suggestions for Financial Firms and Professionals to Consider,” which provides a non-exclusive list of suggestions firms should consider when designing or implementing policies and procedures relating to senior investors, including suggestions under the following headings:
–Establish and Follow Sound Policies for Seniors,
–Know and Comply with the New Laws and Regulations,
–Engage in Training, and
–Taking Action, Including Voluntary Action, to Protect Seniors.
A full copy of “How the SEC Works to Protect Senior Investors” (May 2019) can be accessed here: https://www.sec.gov/about/offices/investorad/how-the-sec-works-to-protect-senior-investors.pdf.
Cited in the May 2019 paper is a June 2018 whitepaper, also issued by the SEC’s Office of the Investor Advocate, entitled “Elder Financial Exploitation: Why it is a concern, what regulators are doing about it, and looking ahead.” The June 2018 whitepaper is also chock-full of information about senior investor exploitation and the regulatory efforts to combat it, making it also well worth a read by anyone interested in compliance in that arena.
A full copy of “Elder Financial Exploitation: Why it is a concern, what regulators are doing about it, and looking ahead” (June 2018) can be accessed here: https://www.sec.gov/files/elder-financial-exploitation.pdf.
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