Bill Text: CT SB00474 | 2018 | General Assembly | Introduced
Bill Title: An Act Protecting Elderly Adults From Financial Exploitation.
Spectrum: Committee Bill
Status: (Introduced - Dead) 2018-04-09 - File Number 342 [SB00474 Detail]
Download: Connecticut-2018-SB00474-Introduced.html
General Assembly |
Raised Bill No. 474 | ||
February Session, 2018 |
LCO No. 2221 | ||
*02221_______BA_* | |||
Referred to Committee on BANKING |
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Introduced by: |
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(BA) |
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AN ACT PROTECTING ELDERLY ADULTS FROM FINANCIAL EXPLOITATION.
Be it enacted by the Senate and House of Representatives in General Assembly convened:
Section 1. (NEW) (Effective October 1, 2018): (a) For purposes of this subsection, unless the context otherwise requires:
(1) "Eligible adult" means an elderly person, as defined in section 17b-450 of the general statutes, or any adult in the care or custody of the Department of Social Services or any successor to such agency;
(2) "Financial exploitation" means the act or process of taking advantage of an eligible adult by another person or caretaker whether for monetary, personal or other benefit, gain or profit. Such conduct includes, without limitation, (A) the wrongful or unauthorized taking, withholding, appropriation or use of money, assets or property of an eligible adult; or (B) any act or omission by a person, including through the use of a power of attorney, guardianship or conservatorship of an eligible adult to: (i) Obtain control, through deception, intimidation or undue influence, over the eligible adult's money, assets or property to deprive the eligible adult of the ownership, use, benefit or possession of such money, assets or property; or (ii) convert money, assets or property of the eligible adult to deprive such eligible adult of the ownership, use, benefit or possession of such money, assets or property; and
(3) "Qualified individual" means any agent, investment adviser agent or person who serves in a supervisory, compliance or legal capacity for a broker-dealer or investment adviser.
(b) (1) (A) If a qualified individual has reasonable cause to suspect or believe that financial exploitation of an eligible adult has occurred or has been attempted, the qualified individual may, not later than two business days after the conduct in issue, report to the Commissioner of Social Services and the Banking Commissioner such suspected exploitation and the basis for such report in any reasonable manner. The Commissioner of Social Services, in consultation with the Banking Commissioner, may develop forms or an electronic reporting protocol to facilitate the reporting process.
(B) A qualified individual who, in good faith and exercising reasonable care, makes a report pursuant to this subsection shall be immune from administrative or civil liability that might otherwise arise solely from the disclosure of any information included in such report or for any failure to notify the customer or client of such disclosure. Such immunity shall not attach where the qualified individual was a participant in the misconduct described in the report. Nothing in this subsection shall affect any existing law imposing criminal liability for, including, but not limited to, perjury, or fraudulent or malicious reporting.
(2) (A) Where an eligible adult has authorized the qualified individual to discuss the eligible adult's financial affairs with a trusted contact person, the qualified individual may notify such trusted contact person of the suspected financial exploitation, unless the qualified individual reasonably believes such trusted contact person is involved in the financial exploitation or other abuse of the eligible adult. A qualified individual who, in good faith and exercising reasonable care, provides notice to a trusted contact person under this subdivision shall be immune from administrative or civil liability that might otherwise arise solely from such disclosure. Such immunity shall not attach where the qualified individual was a participant in the misconduct described in the report. Nothing in this subdivision shall affect any law imposing criminal liability in connection with such disclosure.
(B) Except in the case of an institutional account, an investment adviser registered or required to be registered under chapter 672a of the general statutes shall maintain records reflecting the name and contact information for any trusted contact person age eighteen or older whom an advisory client has authorized to be contacted about the client's account. At the time the advisory account is opened or updated, the investment adviser shall disclose to the client in writing, in physical or electronic form, that the adviser or its qualified individual is authorized to contact the trusted contact person and disclose information about the client's account to address possible financial exploitation, confirm the specifics of the client's current contact information, health status or the identity of any legal guardian, executor, trustee or holder of a power of attorney. The absence of the name of or contact information for a trusted contact person shall not prevent an investment adviser from opening or maintaining an account for a client provided the adviser makes reasonable efforts to obtain the name of and contact information for the trusted contact person.
(3) (A) A broker-dealer or investment adviser may delay a disbursement from an account of an eligible adult or an account on which an eligible adult is a beneficiary if the broker-dealer, investment adviser or qualified individual reasonably believes, after immediately initiating an internal review of the requested disbursement, that the requested disbursement may result in financial exploitation of the eligible adult. During any such disbursement delay, the funds shall be held in temporary escrow pending resolution of the disbursement decision.
(B) The broker-dealer or investment adviser shall, not more than two business days after the requested disbursement, provide written notice of the proposed delay and its reasons to all parties authorized to transact business on the account, except that such notice shall not be required to any party reasonably believed to have engaged in suspected or attempted financial exploitation of the eligible adult.
(C) Any disbursement delay authorized by this subdivision shall expire on the earlier of: (i) A determination by the broker-dealer or investment adviser that the disbursement will not result in financial exploitation of the eligible adult; or (ii) fifteen business days after the first delayed disbursement of the funds. The Department of Social Services or the Banking Commissioner may request that any disbursement delay otherwise scheduled to expire within fifteen days be extended to a date no more than twenty-five business days after the date of the first delayed disbursement of the funds. Nothing in this subdivision shall preclude the Department of Social Services, the Banking Commissioner or a court of competent jurisdiction from terminating the disbursement delay at an earlier date.
(D) A court of competent jurisdiction may enter an order extending the disbursement delay or may order other protective relief based on the petition of the Department of Social Services, the Banking Commissioner, the broker-dealer or investment adviser that initiated the disbursement delay or other interested party.
(E) A broker-dealer or investment adviser that, in good faith and exercising reasonable care, complies with this subdivision shall be immune from any administrative or civil liability that might otherwise arise from such disbursement delay.
(4) A broker-dealer or investment adviser shall provide access to or copies of records that are relevant to the suspected or attempted financial exploitation of an eligible adult to the Banking Commissioner and to other law enforcement, either as part of a referral to the Banking Commissioner or to law enforcement, or upon request of the Banking Commissioner or law enforcement pursuant to an investigation or examination, as the case may be. Such records shall include relevant requests for disbursements; documentation supporting any disbursement delay; documentation supporting the broker-dealer or investment adviser's reasonable belief that financial exploitation has occurred or is occurring; the name and title of the person authorizing the disbursement delay; notifications to affected parties; and documentation relating to the firm's internal review of the matter. Any records made available to agencies hereunder shall not be considered public records for purposes of chapter 14 of the general statutes. In accordance with subsection (c) of section 36b-31 of the general statutes, the Banking Commissioner may share and exchange with affected social services regulators information and documents related to the suspected financial exploitation. Nothing in this subdivision shall limit or otherwise impede the authority of the Banking Commissioner to access or examine the books and records of broker-dealers and investment advisers as otherwise provided by law.
(5) A broker-dealer or investment adviser subject to this subsection shall develop training policies or programs reasonably designed to ensure that qualified individuals understand and can effectively carry out the provisions of this subsection where necessary.
(6) If any provision of this subsection is preempted by federal law, the provisions of federal law shall control.
This act shall take effect as follows and shall amend the following sections: | ||
Section 1 |
October 1, 2018 |
New section |
Statement of Purpose:
To (1) provide a mechanism by which broker-dealers and investment advisers may voluntarily report suspected cases of financial exploitation involving seniors and other vulnerable adults, and (2) authorize a temporary disbursement delay from securities-related accounts in suspected cases of financial exploitation.
[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.]