What's happening
This bill allows financial professionals to report and delay transactions to help prevent the financial exploitation of elderly and vulnerable adults.
Why it matters
Empowers financial professionals to act. By allowing brokers, dealers, and investment advisers to notify authorities or delay transactions when they suspect financial exploitation, the bill creates a frontline defense against scams and abuse targeting seniors and vulnerable adults.
Provides legal immunity for reporting. Financial professionals are protected from civil or administrative liability when they report suspected exploitation or delay disbursements in good faith, reducing fears of legal repercussions and encouraging proactive intervention.
Creates clear processes and safeguards. The bill mandates timely notifications, limits the length of transaction delays (with specific extensions allowed by regulators or courts), and ensures that only trusted third parties are informed—helping prevent both overreach and further victimization.
Strengthens collaboration with agencies. Firms must provide relevant records to adult protective services and law enforcement during investigations, supporting more effective detection and response to financial crimes against vulnerable adults while keeping these records confidential.
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Who cares
Headline styles
Stop Senior Financial Abuse
Plain English, a few words. Used as the page title.
Sponsors
2 Co-sponsors
History
- Referred to consumer protection
- Referred to consumer protection
Full text
3 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
1293
2025-2026 Regular Sessions
IN SENATE
January 9, 2025
Introduced by Sens. BORRELLO, OBERACKER, SANDERS -- read twice and ordered printed, and when printed to be committed to the Committee on Consumer Protection
AN ACT to amend the general business law, in relation to preventing the financial exploitation of older and vulnerable adults
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. The general business law is amended by adding a new section 359-eeee to read as follows:
§ 359-eeee. Prevention of financial exploitation of elderly and vulnerable adults. 1. For purposes of this section, the following terms shall have the following meanings:
(a) "Eligible adult" means:
(i) a person sixty-five years of age or older; or
(ii) a person subject to adult protective services.
(b) "Financial exploitation" means:
(i) the wrongful or unauthorized taking, withholding, appropriation, or use of money, assets or property of an eligible adult; or
(ii) any act or omission taken by a person, including through the use of a power of attorney, guardianship, or conservatorship of an eligible adult, to:
(1) obtain control, through deception, intimidation or undue influence, over such eligible adult's money, assets or property to deprive such eligible adult of the ownership, use, benefit or possession of such eligible adult's money, assets or property; or
(2) convert money, assets or property of such eligible adult to deprive such eligible adult of the ownership, use, benefit or possession of such eligible adult's money, assets or property.
(c) "Qualified individual" means any agent, representative or person who serves in a supervisory, compliance, or legal capacity for a broker-dealer or investment adviser.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD01685-01-5
(d) "Investment advisor" shall have the same meaning as such term is defined pursuant to paragraph (a) of subdivision one of section three hundred fifty-nine-eee of this article.
(e) "Broker" and "dealer" shall have the same meaning as such terms are defined pursuant to paragraphs (a) and (b) of subdivision one of section three hundred fifty-nine-e of this article.
2. (a) If a qualified individual reasonably believes that financial exploitation of an eligible adult may have occurred, may have been attempted, or is being attempted, such qualified individual may promptly notify adult protective services and the commissioner of the department of financial services.
(b) A qualified individual that in good faith and exercising reasonable care makes a disclosure of information pursuant to paragraph (a) of this subdivision shall be immune from administrative or civil liability that might otherwise arise from such disclosure or for any failure to notify the customer of the disclosure.
3. (a) If a qualified individual reasonably believes that financial exploitation of an eligible adult may have occurred, may have been attempted, or is being attempted, such qualified individual may notify any third-party previously designated by the eligible adult. Disclosure shall not be made to any designated third-party that is suspected of financial exploitation or other abuse of the eligible adult.
(b) A qualified individual that, in good faith and exercising reasonable care, complies with paragraph (a) of this subdivision shall be immune from any administrative or civil liability that might otherwise arise from such disclosure.
4. (a) A broker-dealer or investment adviser may delay a disbursement from an account of an eligible adult or an account on which an eligible adult is a beneficiary if:
(i) the broker-dealer, investment adviser, or qualified individual reasonably believes, after initiating an internal review of the requested disbursement and the suspected financial exploitation, that the requested disbursement may result in financial exploitation of an eligible adult; and
(ii) the broker-dealer or investment adviser:
(1) immediately, but in no event more than two business days after the requested disbursement, provides written notification of the delay and the reason for the delay to all parties authorized to transact business on the account, unless any such party is reasonably believed to have engaged in suspected or attempted financial exploitation of the eligible adult;
(2) immediately, but in no event more than two business days after the requested disbursement, notifies the commissioner of the department of financial services; and
(3) continues its internal review of the suspected or attempted financial exploitation of the eligible adult, as necessary, and reports the investigation's results to the commissioner of the department of financial services within seven business days after the requested disbursement.
(b) Any delay of a disbursement as authorized pursuant to this section shall expire upon the sooner of:
(i) a determination by the broker-dealer or investment adviser that the disbursement will not result in financial exploitation of the eligible adult; or
(ii) fifteen business days after the date on which the broker-dealer or investment adviser first delayed disbursement of the funds, unless the department of financial services requests that the broker-dealer or investment adviser extend the delay, in which case the delay shall expire no more than twenty-five business days after the date on which the broker-dealer or investment adviser first delayed disbursement of the funds unless sooner terminated by either the department of financial services or an order of a court of competent jurisdiction.
(c) A court of competent jurisdiction may enter an order extending the delay of the disbursement of funds or may order other protective relief based on a petition of the commissioner of the department of financial services, adult protective services, the broker-dealer or investment adviser that initiated the delay pursuant to this subdivision, or another interested party.
(d) A broker-dealer or investment adviser that, in good faith and exercising reasonable care, complies with this subdivision shall be immune from any administrative or civil liability that might otherwise arise from such delay in a disbursement in accordance with this subdivision.
5. A broker-dealer or investment adviser shall provide access to or copies of records that are relevant to the suspected or attempted financial exploitation of an eligible adult to agencies charged with administering state adult protective services laws and to law enforcement, either as part of a referral to an agency or to law enforcement, or upon request of an agency or law enforcement pursuant to an investigation. The records shall include historical records as well as records relating to the most recent transaction or transactions that may comprise financial exploitation of an eligible adult. All records made available to agencies under this section shall not be considered a public record. Nothing in this subdivision shall limit or otherwise impede the authority of the commissioner of the department of financial services to access or examine the books and records of broker-dealers and investment advisers as otherwise provided by law.
§ 2. This act shall take effect immediately.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the general business law, in relation to preventing the financial exploitation of older and vulnerable adults
Purpose
To protect older and vulnerable New Yorkers from financial exploitation by allowing qualified individuals to delay questionable withdrawals from a client's account and notify adult protective services and the commis- sioner of the department of financial services.
Summary of provisions
Section 1 amends the general business law by adding a new section for the purpose of preventing the financial exploitation of elderly and vulnerable adults, including:
Read the full memo (602 words)
359-eeee(1): defines the relevant terms including eligible adult, finan- cial exploitation, qualified individual, investment advisor, broker and dealer. A qualified individual is defined as any agent, representative or person who serves in a supervisory, compliance, or legal capacity for a broker-dealer or investment advisor. An eligible adult is defined as a person sixty-five years of age or older, or subject to adult protective services.
359-eeee(2): allows a qualified individual to notify adult protective services and the commissioner of the department of financial services upon a reasonable belief that financial exploitation of an eligible adult may have occurred, may have been attempted, or is being attempted, and provides that he/she shall be immune from administrative or civil liability for such disclosure.
359-eeee(3): allows a qualified individual to notify any third-party previously designated by the eligible adult, and provides that he/she shall be immune from administrative or civil liability for such disclo- sure.
359-eeee(4): allows a broker-dealer or investment advisor to delay a disbursement from the account of an eligible adult if certain conditions are met, including written notification of the delay. Requires that any delay of a disbursement expire after fifteen days or upon a determi- nation that the disbursement will not result in financial exploitation, unless the department of financial services or a court extends the delay. This section also provides that a broker-dealer or investment advisor that complies with the law in good faith and exercises reason- able care is immune from any administrative or civil liability that might otherwise arise from a delay in a disbursement.
359-eeee(5): requires a broker-dealer or investment advisor to provide access to or copies of records that are relevant to the suspected or attempted financial exploitation of an eligible adult to the appropriate agencies and law enforcement.
Section 2 sets forth the effective date.
Justification
Older and vulnerable adults are at greater risk of being victims of financial exploitation. The Office of Children and Family Services esti- mates that the financial loss to vulnerable elderly New Yorkers is approximately $1.5 billion each year.
Although New York State allows banks to place a hold on the bank account of a vulnerable person when they suspect financial exploitation of a vulnerable person, this bill would strengthen immunity protections and create a reporting mechanism allowing more individuals to report finan- cial exploitation. Furthermore, it would allow qualified individuals to delay the disbursement of funds from the account of an eligible adult and to notify the appropriate authorities without liability that might otherwise result from a delay or disclosure.
Thirty-two states have adopted their version of a similar "report and hold" law based on the North American Securities Administrators Associ- ation's model act to protect vulnerable adults from financial exploita- tion. This amendment would also complement existing Federal law, which offers protections to fewer individuals and requires individuals to receive specialized training to qualify for receiving immunity for reporting.
Prior legislative history
2024: S1071 Referred to Consumer Protection
2023: S1071 Referred to Consumer Protection
2022: S8854
Effective date
This act shall take effect immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.