HB 940 Summary

• Adds new part to Chapter 485A, Hawaii Revised Statutes, establishing protections for elders (age 62+) and vulnerable adults from financial exploitation by securities industry professionals.

• Requires qualified persons (agents, broker-dealers, investment advisers, and supervisory/compliance personnel) to promptly notify the commissioner if they reasonably believe financial exploitation of an elder or vulnerable adult may have occurred, been attempted, or is being attempted.

• Permits qualified persons to notify reasonably associated individuals or previously designated third parties about suspected financial exploitation, except those suspected of abuse.

• Authorizes qualified persons to delay account disbursements or transactions for up to 15 business days (extendable to 25 business days by commissioner request or court order) when they reasonably believe the transaction may result in financial exploitation.

• Provides immunity from administrative and civil liability for qualified persons who act in good faith and with reasonable care when reporting suspected exploitation, making third-party disclosures, or delaying transactions under this act.