NASAA SENIOR RESOURCES
NASAA and its members have been in the forefront in detecting the problem of senior investor abuse and responding to it aggressively with innovative regulatory solutions, targeted enforcement, investor education and publication of best practices for serving senior investors.
With at least a third of its members’ enforcement actions involving senior investors, NASAA in 2014 formed a Board-level committee to tackle a wide range of challenges confronting senior investors, regulators and securities industry professionals.
Model Acts & Rules
In January 2016, NASAA members voted to adopt the Model Act to Protect Vulnerable Adults from Financial Exploitation. The NASAA model act gives industry participants and state regulators new tools to help detect and prevent financial exploitation of vulnerable adults. The act mandates reporting to a state securities regulator and state adult protective services agency when a qualified individual has a reasonable belief that financial exploitation of an eligible adult has been attempted or has occurred. The act also authorizes disclosure to third parties only in instances where an eligible adult has previously designated the third party to whom disclosure may be made.
In March 2008, NASAA members voted to adopt the NASAA Model Rule On the Use of Senior-Specific Certifications and Professional Designations. The model rule prohibits the misleading use of senior and retiree designations, a problem first spotlighted by state securities regulators, while while also providing a means by which a securities administrator may recognize the use of certain designations conferred by an accredited organization.
Training for the Securities Industry
Addressing and Reporting Financial Exploitation of Senior and Vulnerable Adult Investors
NASAA, the SEC, and FINRA have provided this training presentation as a service to the securities industry. Firms can use this presentation to train associated persons about how to detect, prevent, and report financial exploitation of senior and vulnerable adult investors. The training serves as a resource for firms implementing the requirements of the federal “Senior Safe Act” (Section 303 of the ‘‘Economic Growth, Regulatory Relief, and Consumer Protection Act’’) and the state training requirements for certain firms and financial institutions relating to senior investor protection and set forth in Connecticut Gen. Statutes 16b.463. As of June 2021, the training satisfies state training requirements for certain firms and financial institutions relating to senior investor protection and set forth in Florida Statutes Section 517.34; Nevada NRS Sec. 90.614; New Mexico NMSA 1978, Section 58-13D-7; Puerto Rico OCFI Reg. No. 7900, Art. 3 §1; and Washington RCW 74.34.220.
Report on Senior Practices and Procedures, June 2017
In 2016, the Investment Products & Services project group under the direction of the NASAA Broker-Dealer Section Committee conducted a survey of broker-dealer practices and procedures applicable to senior investors. NASAA greatly appreciates the cooperation of the more than 60 broker-dealers that responded to the inquiry. This report summarizes findings from the inquiry.