SCS/SB 654 - This act modifies provisions relating to regulation of securities.SENIOR SAVINGS PROTECTION ACT
Under current law, only qualified individuals, as defined by law, are permitted to:
• Notify authorities of the financial exploitation of senior citizens or persons with certain disabilities; or
• Refuse disbursement of funds from the account of a senior citizen or person with a certain disability.
This act modifies the definition of "qualified individual" to include broker dealers and investment advisers in addition to persons associated with a broker-dealer or investment adviser.
Current law permits a qualified individual to notify certain persons connected with a senior citizen or person with a certain disability of suspected financial exploitation of such person. This act additionally permits an investment adviser representative to make such notifications. Additionally, the Department of Health and Senior Services and the Commissioner of Securities may provide information regarding the senior citizen or person with a certain disability to the qualified individual or investment adviser representative upon request.
Current law allows a qualified individual to refuse a request for disbursement from the account of a senior citizen or person with a certain disability if the qualified individual reasonably believes that the disbursement will result in financial exploitation of the person. This act additionally permits refusal of any request for a transaction from the account of such a person.
The act provides that in the event of a refusal of a disbursement or transaction from the account of a senior citizen or person with a certain disability, a qualified individual shall notify the Department of Health and Senior Services and the Commissioner of Securities within two business days. Current law requires notification within three business days. Additionally, the act requires the qualified individual to send a written notice, in the manner described in the act, to the qualified adult within two business days.
The act allows the Commissioner of Securities and the Director of the Department of Health and Senior Services to enter an order extending any refusal of a disbursement or transaction for the time necessary to protect the senior citizen or person with a certain disability. Subsequent to issuing such an order, the respective agency shall conduct a review every 30 days to determine if the extending order shall remain in effect.
The act extends immunity from any civil liability under the Senior Savings Protection Act to an investment adviser representative if he or she acts in good faith and exercises reasonable care in complying with the provisions of the act.
The act requires an investment adviser to provide access, and copies of records that are relevant, to any suspected financial exploitation of a senior citizen or person with a certain disability to the Department of Health and Senior Services, the Commissioner of Securities, or law enforcement, upon request.
No later than September 1, 2021, the Commissioner of Securities is required to make available to investment advisers and investment adviser representatives training resources of the prevention and detection of financial exploitation of senior citizens and persons with certain disabilities.
THE MISSOURI SECURITIES ACT OF 2003
This act further provides that certain federal covered securities exempt from state registration under federal law may require a notice filing by or on behalf of an issuer no later than 15 days after the first sale within the state of the federal covered security with a fee of $100 and a late fee of $50.
The Commissioner of Securities may impose a civil penalty up to $25,000 rather than $5,000 for each violation of the Missouri Securities Act and may impose an additional penalty of $15,000 in certain circumstances, if the victim was an elderly or disabled person.
Additionally, the Commissioner is required to file an action or issue an order within 5 years of the date on which knowledge of an alleged violation is received, but in no event more than 15 years after the date of the alleged violation.
This act is substantially similar to provisions in the truly agreed to HCS/SCS/SB 599 (2020), HCS/HB 1451 (2020), certain provisions in the perfected HB 1736 (2020), certain provisions in HCS/HB 2092 (2020), certain provisions in HCS/HB 2461 (2020), SB 142 (2019), and HB 354 (2019).
SCOTT SVAGERA