States Fight Senior Financial Abuse

North American Securities Administrators Association President Joseph Borg says states are making progress in the battle against senior fraud and financial abuse, reports Financial Advisor . He notes 14 states have embraced laws requiring or urging financial advisers to disclose any suspected abuse of clients older than 65 to the proper state senior protection agencies, and some statutes are voluntary while others are mandatory. The association's model act states that any eligible person who reasonably believes financial exploitation of a senior is occurring must report it to Adult Protective Services and the state securities regulator. Borg says other states are considering this or similar proposals. "In Alabama, we have passed legislation to increase the statute of limitations to five years from the date of discovery instead of five years from the occurrence," he notes. "We have also issued guidelines on what red flags to look for." Annual senior financial abuse costs range from $3 billion to $36 billion, and these numbers exclude social costs, says Federal Reserve Bank of Philadelphia President Patrick T. Harker. The state push coincides with Congress' passage of the federal Senior Safe Act, which encourages advisers and their firms to report the financial exploitation of seniors by shielding them from liability and violation of privacy laws.