White Papers

Senior Investor Protection White Paper – Transactions v Disbursements

Summary

As the securities industry continues to work toward new ways to expand its protections for its senior and vulnerable clients, legislators and regulators have begun to respond by providing new tools for the industry.  “Report & Hold” Laws are sweeping the nation.  These laws provide financial institutions with a safe harbor from liability when they temporarily pause suspicious transactions or disbursements to allow an investigation to take place before the potential exploiters receive their proceeds.  16 states have recently enacted new “Report & Hold” laws and that number continues to grow; FINRA, the industry’s frontline regulator, has also adopted a “Report & Hold” safe harbor.  One of the vital discussions taking place in the development of these new safe harbors is whether it should apply to both transactions and disbursements.  This White Paper walks through the important policy and legal considerations that surround this decision and makes clear that transactions must be included to realize robust and effective investor protections.

PDF

Committee

Retirement and Savings Committee, State Government Relations

Date

23

January

2018