Release Date: October 13, 2015
Contact:  Carol Danko, 202-962-7390, [email protected]

SIFMA’s Bentsen Delivers Opening Remarks at Senior Investor Forum

New York, NY, October 13, 2015 – SIFMA president and CEO Kenneth E. Bentsen, Jr., today delivered opening remarks at SIFMA’s 2015 Senior Investor Forum, “Serving the Needs of Our Aging Investors” in New York. His full remarks can be found here.

Bentsen states, “For the last four years, SIFMA has engaged at both the state and federal levels on matters involving senior investors.”  

“[S]eniors lose at least $2.9 billion  annually to financial exploitation. Furthermore, it has been estimated that about 1 in 5 Americans aged 65 or older  have been victimized by financial fraud.” 

“The greatest percentage of elderly financial exploitation is not from career criminals, but actually from family members or close associates.  In fact, it is estimated that 55 percent of financial abuse in the United States is committed by family members, caregivers, and friends.” 

“This is an emerging issue that the industry has made a priority.  Developing practices to identify and act on warning signs, such as continual training, screensavers highlighting red flags, and annual check-ins are critical.  Many firms… have developed innovative approaches to identify and act on issues of diminished mental capacity with their clients. Some retain the help of gerontologists on staff or require the listing of an emergency contact should signs of diminished capacity arise. Employees are being trained to identify a problem, how to have a difficult conversation with a client and follow a protocol for reporting exploitation and, then, managing the client’s account moving forward.” 

“The industry is working collaboratively with policymakers throughout the country to update laws and regulations to meet this emerging threat such as defining when an adviser is acting in good faith to protect investor assets and report suspected abuse.” 

“Additionally, we continue to advocate for a national standard that provides protection for senior investors’ assets while also providing protection from liability and retaliation for brokers so they will be able to report suspected abuses.”