Vote Smart's Synopsis:

Vote to pass a bill that establishes procedures for a delay in the redemption of securities if a company believes that an older or impaired individual has been financially exploited.

Highlights:

• Establishes procedures for delaying the redemption of certain securities if an investment company or agent believes that an older individual or an individual with certain impairments has been financially exploited (Sec. 2).

• Authorizes the delay of the redemption of a security issued by an open-end investment management company and serviced by a transfer agent if the company or agent reasonably believes the redemption involves the financial exploitation of an individual age 65 or older, or age 18 or older who is unable to protect his or her own interests due to a mental or physical impairment (Sec. 2).

• Authorizes a company to initially delay the redemption for up to 15 days and, upon making a determination of exploitation, may delay the redemption an additional 10 days (Sec. 2).

• Authorizes a state regulator, appropriate administrative agency, or court to extend this period (Sec. 2).

• Requires the company, in the event of delay, to hold the amounts related to the redemption in a demand deposit account (Sec. 2).

• Requires the registered open-end investment company and transfer agent to notify the Securities and Exchange Commission (SEC) if they elect to comply with the procedures established under this bill (Sec. 2).

• Requires the SEC to make recommendations to address the financial exploitation of these adults (Sec. 2).

Full Bill Text

Full Bill Text