Earlier this month, the U.S. House of Representatives unanimously passed legislation that aims to help protect older adults from financial scams and would carve out a federal senior investor task force within the Securities and Exchange Commission.
Known as the National Senior Investor Initiative Act of 2023, the bill is intended to identify, through the proposed task force, challenges facing senior investors, such as problems associated with financial exploitation and cognitive decline. It would also seek out areas in which senior investors would benefit from changes at the SEC. The proposed SEC task force is intended to coordinate with other offices and task forces within the regulator and to consult with state securities and law enforcement authorities, state insurance regulators and other federal agencies.
“Unfortunately, far too many of our seniors have had their hard-earned retirement savings stolen right out from under them when a scammer calls or shows up at their door,” Representative Josh Gottheimer, D-New Jersey, the bill’s sponsor, said in a release. “Millions of seniors across the country, including my own mother, have been the victims of financial scams, and far too many have been cheated out of their retirement savings.”
According to Gottheimer, financial scams have cost seniors more than $36 billion per year, and he cited an AARP report that found that scams against seniors have more than doubled since 2020.
The task force would also be required to submit a biennial report to Congress that includes, among other information, a summary of recent trends and innovations that have impacted the investment landscape for senior investors; key observations; best practices; areas needing improvement; and recommendations for changes to SEC rules or guidance.
An SEC spokesperson declined to comment on the proposed legislation.
On Monday, the regulator announced a public service campaign to encourage older investors to “never stop learning” when it comes to protecting their investments. The campaign features a TV spot, as well as videos, including one called Red Flags of Fraud, which encourages older investors to look out for scams, including romance scams, imposter scams and crypto scams.
The bill has not yet been taken up by the Senate.
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Tags: Bill, financial fraud, House of Representatives, Josh Gottheimer, National Senior Investor Initiative Act, SEC, Securities and Exchange Commission, Senior Investor Task Force, senior investors