When a senior citizen is getting scammed, their financial advisor is sometimes the first person to know. But if that advisor reports it to the authorities, they risk violating their firm's privacy rules or even breaking the law.
The Senior Safe Act aims to resolve that conflict. The 2018 law gives legal immunity to financial professionals — including investment advisors, broker-dealers and their employees — if they report that a client aged 65 or older is being defrauded.
"There are also other federal laws and rules that impact this area," said Lori Schock, the director of the Securities and Exchange Commission's Office of Investor Education and Advocacy. "But the Senior Safe Act provides explicit immunity from liability in any civil or administrative proceeding for reporting financial exploitation."
In recent years, that kind of exploitation has skyrocketed. In 2022, 88,262 victims over age 60 reported being defrauded, according to the FBI's
"It's a crisis," said Kathy Stokes, director of fraud prevention programs at the
The Senior Safe Act helps wealth managers blow the whistle on these crimes. But it can only work if they understand when and how it protects them. Here's what financial advisors need to know:
