House Nears Vote on Bill That Frees Advisers to Report Senior Fraud

The U.S. House is expected to vote on reconciliation of the Senior Safe Act as part of its bigger reform package next week, reports Financial Advisor . The law would encourage financial advisers and their firms to disclose the financial exploitation of senior clients by shielding them from liability and the violation of privacy laws. "We are encouraged this legislation is advancing and urge Congress to move it forward to become law," says Lisa Bleier with the Securities Industry and Financial Markets Association. The bill also encourages financial services companies to offer standardized training to frontline employees and producers to help them spot and report instances of suspected abuse. By granting immunity, the Senior Safe Act would enlist advisers to help staunch the flow of financial fraud against seniors, according to Financial Services Institute CEO Dale Brown. "By encouraging the reporting of suspected fraud, the Senior Safe Act improves the ability of companies to work with regulators to protect seniors from losing their retirement savings," notes American Council of Life Insurers President Dirk Kempthorne. The National Association of Insurance and Financial Advisers (NAIFA) also has been working with lawmakers in support of the legislation. "NAIFA worked hard with lawmakers to craft legislation that encourages advisers to protect their senior clients and give them mechanisms for doing so while shielding advisers who act in good faith and with reasonable care from liability," says NAIFA President Keith Gillies.