Senate Bill 496, known as Protections Against Financial Abuse of Elder and Dependent Adults, gives financial industry participants and state regulators new tools to help detect and prevent the financial abuse of vulnerable adults.
Financial Abuse of Elders and Dependent Adults is a growing problem. The National Adult Protective Services Association notes that one in nine seniors report being abused, neglected or exploited in the past twelve months, with one in twenty elder adults reporting some form of financial mistreatment. In addition, only one in forty-four cases of financial abuse are ever reported. The costs of elder financial abuses are assessed to be in the billions. The National Center on Elder Abuse has projected the costs at around $2.9 billion, while True Link Financial shows $36.48 billion.
The North American Securities Administration Association (NASAA) notes that state securities regulators are positioned to intercede on behalf of vulnerable seniors, but to be successful, must be made aware of the abuse. Restructurings of the protections against financial exploitation of elder and dependent adults are necessary to combat this growing problem and this legislation seeks introduce reforms proposed by the NASAA.
Senator Moorlach presents SB 496 in the Senate Banking and Financial Institutions Committee, Wednesday, April 10th, 2019
- Elder Financial Exploitation, National Adult Protective Services Association
- Elder Financial Abuse Report, True Link Financial
- NASAA Model Legislation to Protect Vulnerable Adults from Financial Exploitation, North American Securities Administrators Association
Megan De Sousa, (916) 651-4037