Financial Exploitation Prevention Act of 2025
Sponsored By: Representative Wagner
In Committee
Summary
Creates an opt-in program letting mutual funds pause redemptions to prevent the financial exploitation of seniors and other vulnerable adults. Funds and transfer agents can elect procedures that delay payout, contact a designated adult, and keep records while they investigate suspected exploitation.
Show full summary
- Specified adults and households: People age 65 or older or adults with impairments get an extra safety net because funds can postpone redemptions for up to 15 business days and extend up to 10 additional business days in certain cases.
- Families and designated contacts: Funds must collect at least one adult contact and make reasonable efforts to reach them to confirm health or identify guardians. Funds may avoid notifying a contact if that person is reasonably believed to be the exploiter.
- Funds, transfer agents, and regulators: The protections apply only to non-institutional direct-at-fund accounts that opt in. Funds must disclose the possibility of postponement in prospectuses, hold delayed proceeds in a demand deposit account, retain detailed records, and the SEC must report to Congress within one year with recommendations after consulting financial regulators.
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Bill Overview
Analyzed Economic Effects
3 provisions identified: 2 benefits, 0 costs, 1 mixed.
Funds could pause redemptions for seniors
If enacted, funds and their transfer agents could delay paying a redemption when they reasonably think a specified adult is being exploited. The first pause could last up to 15 business days, beyond the usual 7-day payout. They could add up to 10 more business days if they notify a named adult within 2 days (unless that person is suspected), start an internal review, keep the money in a demand deposit account, and keep records. A state regulator or court could also extend the pause. This would apply to direct-at-fund accounts where a fund elects to use these protections.
Opt-in fund protections and trusted contact person
If enacted, a fund and its transfer agent could opt in for direct retail accounts by notifying the SEC. If they opt in, they must ask you to name at least one adult contact and keep that information. They must tell you in writing they may contact that person to address suspected exploitation, confirm your contact or health status, or find a guardian or power of attorney. Funds and transfer agents would need internal rules, named staff who can start or end delays, and records the SEC can review.
SEC study on elder financial abuse
If enacted, the SEC would have to send Congress a report within one year. It would recommend changes to better prevent exploitation of specified adults. The SEC would consult other financial regulators while preparing the report.
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Sponsors & CoSponsors
Sponsor
Wagner
MO • R
Cosponsors
Gottheimer
NJ • D
Sponsored 3/27/2025
Garbarino
NY • R
Sponsored 3/27/2025
Steil
WI • R
Sponsored 3/27/2025
Kim
CA • R
Sponsored 3/27/2025
Perez
WA • D
Sponsored 3/27/2025
Lawler
NY • R
Sponsored 3/27/2025
Huizenga
MI • R
Sponsored 4/7/2025
Vindman
VA • D
Sponsored 6/3/2025
Fields
LA • D
Sponsored 6/4/2025
Sessions
TX • R
Sponsored 9/15/2025
Nunn (IA)
IA • R
Sponsored 9/16/2025
Roll Call Votes
No roll call votes available for this bill.
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