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Protecting Seniors from Financial Fraud: Delaying Fund Redemptions.

This law aims to protect seniors (65+) and vulnerable adults from financial exploitation. It allows investment companies to temporarily pause the withdrawal of money from mutual funds if they reasonably suspect the customer is being defrauded. This provides a window to verify the situation and contact a trusted person designated by the customer, safeguarding citizens' savings.
Key points
Investment companies can delay fund withdrawals (up to 15, or 25 business days if extended) if they suspect a senior (65+) or other vulnerable adult is subject to financial exploitation.
Customers can voluntarily provide contact information for a trusted adult who the company may notify if fraud, health concerns, or legal guardianship issues arise regarding the account.
The delay mechanism is designed to prevent the rapid liquidation of assets by older individuals acting under the influence of scammers.
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Expired
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Additional Information
Print number: 118_S_1481
Sponsor: Sen. Hagerty, Bill [R-TN]
Process start date: 2023-05-09
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Summarized by: gemini-2.5-flash-preview-09-2025
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Financial Exploitation Prevention Act of 2023

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 118_S_1481.

Which chamber initiated this legislation?

This legislation was initiated in the Senate.

When did the legislative process begin?

The process officially started on 2023-05-09.

What are the main provisions?

Key points include:

  • Investment companies can delay fund withdrawals (up to 15, or 25 business days if extended) if they suspect a senior (65+) or other vulnerable adult is subject to financial exploitation.
  • Customers can voluntarily provide contact information for a trusted adult who the company may notify if fraud, health concerns, or legal guardianship issues arise regarding the account.
  • The delay mechanism is designed to prevent the rapid liquidation of assets by older individuals acting under the influence of scammers.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Sen. Hagerty, Bill [R-TN].

What is the latest detailed status?

The latest detailed status is: Introduced in Senate

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-26.

CATEGORIES

Economy Security