CS/CS/CS/HB 681 - Protection for Vulnerable Investors

• Securities dealers, investment advisers, and associated persons must immediately report knowledge or reasonable suspicion of abuse, neglect, or exploitation of vulnerable adults to the Department of Children and Families' central abuse hotline.

• Dealers, investment advisers, and associated persons may delay transactions or disbursements on accounts of specified adults (age 65+) or vulnerable adults if they reasonably believe exploitation has occurred, is occurring, has been attempted, or will be attempted.

• Delays expire automatically after 15 business days but may be shortened or extended by courts or agencies; dealers must notify the Office of Financial Regulation quarterly on a form prescribed by rule.

• Dealers and investment advisers must develop training policies requiring all associated persons to receive a minimum of 1 hour of exploitation training initially and every 2 years thereafter, covering recognition of exploitation indicators and reporting procedures.

• Dealers, investment advisers, and associated persons who delay transactions based on reasonable belief of exploitation are presumed to be acting reasonably and are immune from civil or administrative liability unless clear and convincing evidence shows lack of reasonable belief.