On June 5, 2016, the SEC hosted the spring 2018 meeting of the Elder Justice Coordinating Council (the "Council"). The meeting focused on elder abuse. Chair Clayton's opening remarks reinforced the SEC's continued commitment and concern about the financial exploitation of seniors. Chair Clayton explained how the SEC is very concerned about financial exploitation and does what it can to protect elderly investors while ensuring they have quality investment opportunities. Chair Clayton warned, when it comes to investment scams that prey on the elderly, "our Enforcement Division is on the lookout." Backing up his claim, Chair Clayton first highlighted how the SEC established the Retail Strategy Task Force, the focus of which is to identify, punish, and deter misconduct that affects everyday investors. Additionally, the SEC's Division of Investment Management provided no-action relief to permit mutual funds to temporarily delay the disbursement of redemption proceeds when there is a reasonable belief of financial exploitation of a senior or impaired adult. Chair Clayton also noted that President Trump and Congress enacted bipartisan legislation which will strengthen the ability of financial institutions and their employees to identify and report instances of financial exploitation of seniors to the appropriate authorities. Chair Clayton expressed how the SEC is eager to work with other regulators in order to protect vulnerable seniors from financial exploitation and fraud.
Originally published in REVERSEinquiries: Volume 1, Issue
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