To amend the Investment Company Act of 1940 to postpone the date of payment or satisfaction upon redemption of certain securities in the case of the financial exploitation of specified adults, and for other purposes.
Analysis under review: This bill has generated analysis that may be too generic or incomplete. Clause-level evidence remains available below.
Summary
What This Bill Does
Allows investment companies and transfer agents to delay redemption of securities when financial exploitation of a customer is suspected. Requires collection of trusted contact information for direct-at-fund accounts.
Who Benefits and How
Vulnerable investors, especially elderly, gain protection from financial exploitation. Investment companies can pause suspicious redemptions. Trusted contacts enable family notification of potential fraud.
Who Bears the Burden and How
Investment companies and transfer agents must implement new procedures. Customers must provide trusted contact information. Some redemption delays may inconvenience legitimate transactions.
Key Provisions
- Voluntary election to participate in protective framework
- Request trusted contact information from customers
- May delay redemptions when exploitation suspected
- Must notify SEC of election to participate
Evidence Chain:
This summary is generated from the full bill text using AI analysis. Expand "Detailed Analysis" below for identified beneficiaries/burden bearers.
At a Glance
What This Bill Does
Protects vulnerable investors from financial exploitation
Who Benefits
- Vulnerable investors
- Elderly investors
- Investment companies
Who Bears Costs
- Investment companies
- Transfer agents
- Customers (contact info)
Key Policy Areas
Securities Regulation, Elder Protection, Investor Protection
Primary Purpose
Protects vulnerable investors from financial exploitation
Policy Domains
Legislative Strategy
"Protect vulnerable investors through voluntary industry framework"
Sponsors
Legislative Progress
Passed HouseReceived; read twice and referred to the Committee on Banking, …
Mrs. Wagner (for herself, Mr. Gottheimer, Mr. Steil, Mr. Huizenga, …
Passed House (inferred from eh version)
Impact analysis is available but no clear stakeholder effects identified. View clause-level analysis →
Bill Structure & Actor Mappings
Who is "The Secretary" in each section?
- "commission"
- → Securities and Exchange Commission
We use a combination of our own taxonomy and classification in addition to large language models to assess meaning and potential beneficiaries. High confidence means strong textual evidence. Always verify with the original bill text.
Learn more about our methodology