Texas lawmakers have passed an elder financial abuse prevention bill that they expect to be signed by Gov. Greg Abbott.
The bill requires advisors and broker-dealers to report suspicions of elder abuse to the state commissioner and the state's department of family and protective services. They also will have 10 days to withhold disbursements for which they have concerns.
"We are one step closer to better protecting seniors from predators while ensuring financial services professionals do not inadvertently violate privacy laws," said FSI President and CEO Dale Brown, in a statement.
May is Elder Abuse Prevention Month in the Lone Star State, and FSI had some of its members lobby for the proposed legislation.
"One of our main advocacy priorities is the prevention of financial exploitation of vulnerable investors. We applaud the Texas State Legislature for listening to and working with our members by taking this critical step forward to prevent elder financial abuse," Brown explained.
FSI says it discussed the issue during its Texas State Capitol Day in February, when some of the group's members described personal stories with legislators and their staff regarding elder abuse.
"We have long said that the power of FSI comes from our members," Brown added. "When financial advisors become citizen lobbyists, they can truly make a difference."
