Financial abuse of elders is a growing problem. The North American Securities Administrators Association (NASAA) and the Financial Industry Regulatory Authority (FINRA) have similar rules. The NASAA requires financial advisors to report suspected abuse. Whereas the FINRA rule is voluntary
It is encouraging that NASAA created a model two years ago that is being adopted so far by 13 states. Other states are waiting to see if this model is adopted at the federal level. Such a proposal has been introduced in Congress under the name of the Senior Safe Act.
It is unfortunate that in our role as financial planners, we all too often see financial abuse of seniors. We believe it would be a positive turn of events if a federal bill addressing this issue were passed.