Missouri Governor Nixon Signs Bill Aimed at Protecting Seniors From Fraud
A bill signed by Missouri Gov. Jay Nixon on Friday is touted by its supporters as a way to protect older residents and those with disabilities from financial exploitation by giving advisers more authority to act if they suspect fraud. The measure, S.B. 244, will provide legal protections for financial professionals who put holds on transactions they find suspicious. It applies to advisers of those 60 and older or those with disabilities. “It’s a common-sense way of making sure that we’re protecting our seniors and those who are disabled from some of the scams and fraudulent activity that’s taking place where their life savings can be gone very quickly,” said bill sponsor Sen. Eric Schmitt, a Glendale Republican. If fraud is suspected and financial advisers opt to block transactions, they must, within two days, attempt to contact anyone authorized to transact business on the account, such as a family member. They also would be required to notify the Missouri Department of Health and Senior Services and the state commissioner of securities. The hold expires either after 10 days or when broker-dealers or other professionals further review the case and find no misconduct — whichever is sooner. Advisers who put holds on such transactions have legal protection from civil liability.
Source/more: Rolla Daily News
David Wingate is an elder law attorney who practices in Frederick and Montgomery Counties, Maryland. The elder law practice consists of wills, powers of attorneys, living wills, trusts, asset protection and Medicaid (Medical Assistance).