The U.S. House Financial Services Committee passed H.R. 2265, the "Financial Exploitation Prevention Act of 2021," a bill which would allow an investment company to postpone the redemption of securities when it suspects possible financial exploitation of a specified adult.
The bill defines a specified adult as (i) an individual 65 years or older or (ii) an individual age 18 or older who is "unable to protect the individual's own interests." The postponement may generally last for no more than 15 business days, but can be extended by an additional 10 business days under certain conditions.
The bill would also require the SEC to submit to Congress, within a year, a report with additional recommendations on potential legislation to address the financial exploitation of specified adults.
If adopted, the bill would amend Section 22 ("Distribution, redemption, and repurchase of securities; regulations by securities associations") of the Investment Company Act.
Primary Sources
- S. House Financial Services Press Release: House Passes Four Bipartisan Financial Services Bills
- R. 2265, the "Financial Exploitation Prevention Act of 2021"
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