HB 5131 Summary

• Amends the Uniform Securities Act (2008 PA 551) to add protections for specified adults against financial exploitation by broker-dealers and investment advisors.

• Defines "specified adults" as individuals age 65 or older, or individuals age 18+ with mental or physical impairments that render them unable to protect their own interests.

• Authorizes broker-dealers and investment advisors to place temporary holds on account disbursements (up to 15 business days, extendable 10 additional days) when they reasonably believe financial exploitation of a specified adult is occurring or will occur.

• Requires notification within 2 business days to account holders and authorized representatives when a hold is placed, along with internal reviews documenting the basis for the hold.

• Mandates written procedures, staff training, and record retention regarding identification and reporting of suspected financial exploitation, with only supervisory, compliance, or legal personnel authorized to approve holds.