Relating to the financial exploitation of designated eligible adults, and making an appropriation

The bill allows broker-dealers, investment advisers, and qualified individuals to notify permissible third parties if they reasonably believe financial exploitation of an eligible adult has occurred, has been attempted, or is being attempted. The bill similarly provides immunity for broker-dealers, investment advisers, and qualified individuals from administrative or civil liability incurred or imposed as a result of this notification. The bill prohibits broker-dealers, investment advisers, and qualified individuals from notifying a permissible third party if the broker-dealer, investment adviser, or qualified individual reasonably suspects the permissible third party of financial exploitation or other abuse of the eligible adult. The bill requires a broker-dealer, investment adviser, or qualified individual to initiate an internal review of a requested disbursement or transaction if the broker-dealer, investment adviser, or qualified individual reasonably believes the disbursement or transaction will likely result in or contribute to the financial exploitation of an eligible adult. The bill allows a broker-dealer or investment adviser to delay a disbursement or transaction from an eligible adult’s account or an account on which an eligible adult is a beneficiary if certain enumerated steps are followed. The bill also prohibits broker-dealers, investment advisers, and qualified individuals from notifying a person authorized to transact business on the eligible adult’s account or an account on which an eligible adult is a beneficiary if the broker-dealer, investment adviser, or qualified individual reasonably believes the person has committed financial exploitation or other abuse of the eligible adult. The bill establishes when and under what conditions the delay of the disbursement or transaction is to end. The bill provides immunity for broker-dealers and investment advisers from administrative or civil liability incurred or imposed as a result of the delay. The bill requires broker-dealers or investment advisers to provide to qualified individuals training related to identifying financial exploitation of eligible adults and privacy and confidentiality requirements. The bill also requires broker-dealers and investment advisers to provide the commissioner of insurance and law enforcement officers access to and copies of records relevant to investigations of financial exploitation of eligible adults in certain enumerated circumstances.2.12 to the insurance division of the department of commerce for the fiscal year beginning July 1, 2020, and each year thereafter, for purposes of investigating complaints and notifications related to financial exploitation of eligible adults.