All Roll Calls
Yes: 414 • No: 2
119-hr-2478119th CongressWALLET
Financial Exploitation Prevention Act of 2025
Sponsored By: Representative Wagner, Ann [R-MO-2]
Passed House
Summary
Protects specified adults from financial exploitation in direct-at-fund accounts. The bill would let registered open-end investment companies and their transfer agents collect an adult emergency contact, document it, and notify that contact when abuse is suspected.
Show full summary
- Specified adults: Covers people aged 65 or older and adults 18 or older with mental or physical impairments. It lets firms pause redemption payments for up to 15 business days and extend that pause by up to 10 more business days if exploitation appears likely.
- Funds and transfer agents: Entities that opt in must collect and retain at least one adult contact, disclose they may contact that person, create internal procedures for identifying and reporting exploitation, and keep records of postponements, reviews, and notifications.
- Regulators: The Securities and Exchange Commission must report to Congress within one year with recommendations to address financial exploitation, after consulting banking and securities regulators and the consumer bureau.
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Bill Overview
Analyzed Economic Effects
3 provisions identified: 1 benefits, 0 costs, 2 mixed.
Redemption holds to protect seniors' funds
If enacted, a mutual fund or its transfer agent would be allowed to delay a redemption payment when it reasonably believes a senior or impaired adult is being exploited. Payment would be delayed beyond the usual 7‑day window for up to 15 business days. The firm would be able to add up to 10 more business days if it notifies the person’s named contact within 2 days (unless that would risk harm), starts an internal review, puts the money in a demand deposit account, and keeps records. A state regulator or court would be able to allow a longer delay. A “specified adult” would mean anyone age 65+ or anyone 18+ the firm reasonably believes has a mental or physical impairment that keeps them from protecting their interests. Firms would adopt written procedures, report internally, disclose these rules in fund documents, and make records available to the SEC.
Add a trusted contact to your account
If enacted, funds and their transfer agents would ask direct‑at‑fund retail customers to name at least one adult they can contact about the account. They would tell you in writing that they may contact this person to check on suspected exploitation, confirm your contact or health status, or find a guardian, trustee, executor, or power‑of‑attorney holder. The firm would document and keep the contact details.
Funds must opt in for protections
If enacted, a mutual fund and its transfer agent would need to elect these rules by notifying the SEC. Only firms that opt in would use the trusted‑contact steps and the temporary redemption delays. This means coverage would vary by fund.
Sponsors & CoSponsors
Sponsor
Wagner, Ann [R-MO-2]
MO • R
Cosponsors
Rep. Gottheimer, Josh [D-NJ-5]
NJ • D
Sponsored 3/27/2025
Rep. Garbarino, Andrew R. [R-NY-2]
NY • R
Sponsored 3/27/2025
Rep. Steil, Bryan [R-WI-1]
WI • R
Sponsored 3/27/2025
Rep. Kim, Young [R-CA-40]
CA • R
Sponsored 3/27/2025
Rep. Perez, Marie Gluesenkamp [D-WA-3]
WA • D
Sponsored 3/27/2025
Rep. Lawler, Michael [R-NY-17]
NY • R
Sponsored 3/27/2025
Rep. Huizenga, Bill [R-MI-4]
MI • R
Sponsored 4/7/2025
Rep. Vindman, Eugene Simon [D-VA-7]
VA • D
Sponsored 6/3/2025
Rep. Fields, Cleo [D-LA-6]
LA • D
Sponsored 6/4/2025
Rep. Sessions, Pete [R-TX-17]
TX • R
Sponsored 9/15/2025
Rep. Nunn, Zachary [R-IA-3]
IA • R
Sponsored 9/16/2025
Roll Call Votes
house vote • 6/25/2026
On Motion to Suspend the Rules and Pass, as Amended
Yes: 414 • No: 2