The North American Securities Administrators Association (NASAA) on Monday published guidance that aims to help both brokerage firms and investment advisory firms develop practices and procedures to identify and address diminished capacity in seniors and other clients, and suspected cases of financial exploitation.
The guide highlights steps that firms can take to identify and respond to issues that are common in working with senior investors, including: identifying vulnerable individuals; governmental reporting; third-party reporting; delaying disbursements from client accounts; and continuing regulatory co-operation following reports or disbursement delays.
The guide was developed by NASAA’s senior issues and diminished capacity committee after research and consultation with a variety of experts, including securities industry associations, advocacy groups for seniors, and other organizations that are on the front lines of addressing senior financial exploitation and diminished capacity issues. It does not create any new regulatory obligations to senior investors, NASAA says in a news release.
“We hope this guide encourages financial services firms to continue to identify and implement additional practices that address the particular needs of senior investors.” says Judith Shaw, NASAA president and Maine Securities Administrator.
“Implementing robust policies and procedures and training programs that encourage firms to protect their senior clients from the adverse consequences of financial exploitation and diminished capacity, and that foster strong relationships among industry, state securities regulators, local adult protective services agencies, and law enforcement, will be a significant step toward addressing the serious issues facing seniors and other vulnerable investors,” adds Shaw
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