Financial Exploitation Prevention Act of 2025
Sponsored By: Senator Bill Hagerty
Introduced
Summary
Protecting older and vulnerable investors from financial exploitation. This bill would let registered open-end funds and their transfer agents opt into a framework that can postpone redemption payments for direct-at-fund accounts when they reasonably suspect a "specified adult" is being financially exploited.
Show full summary
- Specified adults and families: A "specified adult" is defined as someone 65 or older or an adult with a mental or physical impairment. Funds could delay redemption payments up to 15 business days with an extension of up to 10 more business days, and a state regulator, administrative agency, or court may further extend the delay.
- Funds and transfer agents: Would have to collect and retain at least one adult contact for each direct-at-fund account and disclose that the contact may be notified about suspected exploitation. They must create internal procedures, document postponements and reviews, hold delayed proceeds in a demand deposit account during an extension, and notify designated contacts not later than 2 days after deciding to extend.
- Regulators and Congress: The SEC would have to submit a report to Congress within one year with recommendations on regulatory and legislative changes, consulting a statutory list of agencies including the CFTC, the CFPB, FINRA, NASAA, the Federal Reserve Board, the OCC, and the FDIC.
Your PRIA Score
Personalized for You
How does this bill affect your finances?
Sign up for a PRIA Policy Scan to see your personalized alignment score for this bill and every other piece of legislation we track. We analyze your financial profile against policy provisions to show you exactly what matters to your wallet.
Bill Overview
Analyzed Economic Effects
2 provisions identified: 1 benefits, 0 costs, 1 mixed.
Who qualifies for senior protections
If enacted, the bill would define who counts as a "specified adult" for fund safeguards. You would qualify if you are age 65 or older. You would also qualify if you are age 18 or older and the fund reasonably believes you have a mental or physical impairment. The impairment must make it hard for you to protect your own financial interests.
Funds can delay redemptions for seniors
If enacted, a registered open‑end fund and its transfer agent could opt in by notifying the SEC. For direct‑at‑fund accounts, firms must collect at least one adult contact and give written disclosure. If the firm reasonably believes a specified adult is being or was targeted, it could postpone paying a redemption up to 15 business days. The fund could extend that delay up to 10 more business days if it notifies the contact (within 2 days), starts an internal review, holds proceeds in a demand deposit account, and keeps records. A State regulator, agency, or court could extend the postponement further. These rules apply only to funds and transfer agents that elect to follow them and to non‑institutional direct‑at‑fund accounts.
Free Policy Watch
You just read the policy. Now see what it costs you.
Pick a topic. PRIA runs your household against live legislation and sends you a free personalized readout.
Pick a topic to get started
Sponsors & CoSponsors
Sponsor
Bill Hagerty
TN • R
Cosponsors
Sen. Gallego, Ruben [D-AZ]
AZ • D
Sponsored 9/17/2025
Steve Daines
MT • R
Sponsored 9/18/2025
John Hickenlooper
CO • D
Sponsored 12/16/2025
Tammy Duckworth
IL • D
Sponsored 1/15/2026
Sen. Schiff, Adam B. [D-CA]
CA • D
Sponsored 1/28/2026
Susan Collins
ME • R
Sponsored 3/10/2026
Sen. Baldwin, Tammy [D-WI]
WI • D
Sponsored 3/10/2026
Roll Call Votes
No roll call votes available for this bill.
View on Congress.govTake It Personal
Get Your Personalized Policy View
Take the PRIA Score to see how policy affects your household, then upgrade to PRIA Full Coverage for year-round monitoring.
Already have an account? Sign in