The Bill
The Financial Exploitation Prevention Act creates new safeguards for seniors and people with disabilities who hold investment accounts. It allows investment companies to temporarily freeze redemptions if they suspect an older individual or someone with a mental or physical impairment has been financially exploited. Under the law, companies can initially delay redemptions for up to 15 days. If they determine exploitation has occurred, they can extend the delay an additional 10 days. Investment firms must notify the Securities and Exchange Commission if they use these protections.
The SEC will also be required to make recommendations for addressing financial exploitation of adults.
Rep. Keith Self, who represents Texas's 3rd congressional district, voted yes on the bill during a House floor vote on Thursday, June 25. The bill passed with commanding support: 414 votes in favor and only two opposed. The measure sailed through Congress with rare bipartisan unity. Republicans backed it 206-2, while Democrats voted 207-0 in favor. One Independent also supported the bill.
"This is the kind of issue where both sides of the aisle can agree," Self's voting record shows.
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