Sponsors (12)
The bill strengthens protections and response tools for seniors and adults with disabilities facing financial exploitation but does so by permitting temporary holds and creating opt-in, potentially uneven safeguards that can delay legitimate access to funds and cause privacy and operational side effects.
Seniors and adults with impairments face reduced immediate loss risk because funds can be delayed up to 25 business days when financial exploitation is suspected, giving time to investigate and stop further abuse.
Account holders (particularly vulnerable investors) can designate an emergency contact who can help resolve suspected exploitation or identify legal representatives, improving response options and support.
Transfer agents and funds that opt in get clear procedures and recordkeeping requirements for delayed redemptions, increasing transparency and accountability for how holds are applied and resolved.
Low-income individuals and seniors may face significant financial hardship because customers can be delayed from accessing legitimately needed funds for up to 25 business days (e.g., paying bills or rent).
Because the protections are opt-in, investors will face uneven safeguards across funds; this variability can confuse investors and limit the effectiveness of the policy in protecting vulnerable people.
Notifying an emergency contact risks exposing private information or enabling further abuse if the designated contact is the abuser (though the bill exempts notification when the contact is suspected to be the abuser).
Based on analysis of 2 sections of legislative text.
Permits mutual funds and transfer agents to voluntarily collect emergency contact info for vulnerable adult account holders and to temporarily delay redemptions when exploitation is suspected; SEC must report within one year.
Allows registered open-end investment companies (mutual funds) and their transfer agents to opt in to collecting emergency contact information for older adults and adults with impairments and to temporarily delay redemption payments when financial exploitation is suspected. Firms that opt in must obtain and keep at least one contact, disclose the contact purpose to the account holder, confirm concerns or legal representation, follow notice and recordkeeping steps, and may hold redemption payments for defined short periods; state regulators or courts can further extend holds. The SEC must report to Congress within one year with recommendations after consulting other federal and self‑regulatory agencies.
Introduced March 27, 2025 by Ann Wagner · Last progress June 25, 2026