HB 4589 Summary

• Amends the Uniform Securities Act (2002) by adding Article 5A to address financial exploitation of financially endangered adults, defined as individuals 65 years or older or adults in need of protective services.

• Requires qualified individuals (agents, investment adviser representatives, or supervisory/compliance personnel at broker-dealers or investment advisers) to promptly notify the administrator and Department of Health and Human Services if they reasonably believe financial exploitation of a financially endangered adult may have occurred, been attempted, or is being attempted.

• Permits qualified individuals to notify immediate family members, legal guardians, conservators, trustees, agents under power of attorney, or other previously designated individuals about suspected financial exploitation, except those reasonably believed to have engaged in the exploitation.

• Authorizes broker-dealers and investment advisers to delay disbursements from accounts of financially endangered adults if they reasonably believe a withdrawal may result in financial exploitation; delays must include written notification within 2 business days and expire after 15 business days unless extended by the administrator, Department of Health and Human Services, or court order (maximum 25 business days).

• Provides immunity from administrative and civil liability for qualified individuals and financial institutions acting in good faith and exercising reasonable care when reporting suspected exploitation or delaying disbursements under these provisions.