On May 23, 2019, the one-year anniversary of the Senior Safe Act's (the "Act") enactment, the SEC, the North American Securities Administrators Association (NASAA), and FINRA issued a fact sheet to provide information on the immunity and training provisions of the Act, as well as additional resources from the SEC, NASAA, and FINRA
Pursuant to the Act, "covered financial institutions," which include RIAs, broker-dealers, and transfer agents, and their eligible employees, can make reports on exploitation of senior citizens (defined as not younger than 65 years) without liability in any civil or administrative proceeding. Employees who are eligible for such immunity should either be an employee who serves as a supervisor or in a compliance or legal function (including as a Bank Secrecy Act officer) for a covered financial institution; or, a registered representative, investment adviser representative or insurance producer affiliated or associated with a covered financial institution. In addition, reports of suspected exploitation must be made "in good faith" and "with reasonable care."
To receive the immunity provided by the Act, training must include instructions on how to identify and report the suspected exploitation of a senior citizen. A covered institution could receive institutional immunity when an eligible employee makes a disclosure to a covered agency and all employees have received the necessary training.
Originally published in REVERSEinquiries: Volume 2, Issue
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