Senior Savings Protection Act
Updated: Mar 18, 2019
There is a new law called “The Senior Savings Protection Act.” On July 1st, Indiana enacted this law which creates new rules and responsibilities for individuals associated with a broker-dealer in a supervisory, compliance, or legal capacity. The Act requires those individuals to take action in certain situations when working with a client who is a financially endangered adult.
A financially endangered adult is defined as someone who is age 65 or older or a younger person who is not able to manage his/her property because he/she is mentally ill, intellectually disabled, or suffering from some other type of incapacity, such as dementia. The triggering events requiring the individual to take action are when he/she has reason to believe financial exploitation of the financially endangered adult has occurred, has been attempted in the past, or is currently being attempted.
If there is financial exploitation, then the individual is required to make a report to Adult Protective Services or to a law enforcement agency and also notify the securities commissioner. After these mandatory notifications are made, the individual may also choose to notify the adult’s immediate family members, legal guardian, trustee, attorney-in-fact, or others who have been previously agreed to in a customer agreement.
Furthermore, the individual can refuse to make disbursements from the adult’s account or from an account of which the adult is a beneficiary if he/she has reason to believe the disbursements will result in financial exploitation. If a disbursement is refused, the individual must notify all parties authorized to transact business on the account as well as Adult Protective Services. However, if the individual believes a party authorized to transact business on the account is involved in the exploitation, that person is not entitled to notification.
An individual is immune from civil liability when acting in good faith under this new law. The commissioner will be making training resources available on these issues on the Secretary of State’s website by September of next year.