Securities Regulators Meet in Chicago
AGING INVESTORS CITED AS MAJOR CHALLENGE
The North American Securities Administrators Association (NASAA) had their annual meeting at the end of September in Chicago. There was a common theme reiterated throughout the conference: if financial advisors are not focused on issues related to older, vulnerable investors, they will likely be dealing with regulators. Federal and state regulators have published rules and a number of guidance pieces on how investment firms should have protocols in place on how to deal with challenges facing vulnerable clients. Moreover, when firms train their employees on the red flags of elder fraud and exploitation pursuant to the Senior Safe Act, they’ll receive immunity if there are legal issues related to reporting. Despite the attention of regulators, however, a surprising number of investment firms across the country have their heads in the sand when it comes to taking steps to protect their older clients. This was “underscored by results of more than 1,200 examinations by state regulators, who are responsible for overseeing investment advisors with $100 million or less of assets under management. In addition to other deficiencies, these regulators found that nearly 59% of advisors didn’t have policies or procedures in place for addressing the financial exploitation of seniors or vulnerable persons,” according to a NASAA press release. In addition to offering clients comprehensive financial monitoring across accounts and institutions, EverSafe assists firms develop protocols that address issues related to aging clients. We also provide training for advisors, as prescribed in the Senior Safe Act. For more information, call 1-888-575-3837.