SEC Commissioners Urge Beefed-Up Elderly Protection

Securities and Exchange Commission Republican Commissioner Daniel Gallagher and Democratic Commissioner Luis Aguilar urged the agency to beef-up elder financial protection efforts. Gallagher criticized the SEC for letting anti-elder fraud activities fall away since the start of the financial crisis. “It’s time to step up again,” the Republican Commissioner said. On the Democratic side, Aguilar said the agency should do more. For one, it should establish a working group on senior fraud composed of representatives from the enforcement, examination, and investor education sections, he said. He added senior issues should be included in the agency’s rulemaking across the board. “Elder abuse is a problem that has grown exponentially,” Commissioner Aguilar said. Aguilar’s and Gallagher’s comments came at an SEC Investor Advisory Committee meeting in Washington, D.C. During the discussion, Committee Member and AFL-CIO Policy Director Damon Silvers said financial advisers ought to have as a tool of trade the five signs a client might be brain impaired and what to do about it.

He said this knowledge should be brought up during training and SEC examinations — as an aid rather than a threat to advisers. “The vast majority of market professionals want to help,” the labor union leader said. Department of Health and Human Services Assistant Secretary for Aging Kathy Greenlee told the committee educating those who work with seniors is more important and potentially more effective at stemming elder abuse than enforcement actions.

Source/more: Financial Advisor Magazine