Senior Exploitation Protections

# Senior Exploitation Protections Senior exploitation protections are a recurring theme in Series 65 Laws & Regulations questions because NASAA has made protecting elderly and vulnerable investors a top policy priority — expect one or more questions testing your understanding of what advisers and agents can (and must) do when financial exploitation is suspected. This topic is part of Section IV (Laws, Regulations & Guidelines), which accounts for 30% of the Series 65 exam (approximately 39 of 130 scored questions) [NASAA Series 65 Exam Content Outline, effective 2023-06-12]. --- ## Why This Topic Exists Financial exploitation of seniors is one of the most serious problems in the securities industry. Elderly investors control a disproportionate share of investable assets and are frequently targeted by fraudsters — sometimes including trusted family members or caregivers. NASAA has responded by creating model rules that most states have adopted, giving investment advisers and broker-dealer agents specific authority and obligations when they suspect exploitation. --- ## The Core NASAA Framework NASAA's Model Act to Protect Vulnerable Adults from Financial Exploitation (and the accompanying model rule) establishes two central mechanisms: 1. Trusted Contact Person — a named individual the firm can reach out to if concerns arise 2. Temporary Hold on Disbursements — authority to pause a suspicious transaction while the firm investigates ### Trusted Contact Person (TCP) When opening a new account (or updating an existing one), firms are expected to make a reasonable effort to obtain the name and contact information of a **trusted contact…