"Safeguarding Against Financial Exploitation Act" Introduced in the New Jersey State Assembly

On February 25, 2019, the “Safeguarding Against Financial Exploitation Act” was introduced in the New Jersey State Assembly by Assemblyman John Mckeon. The legislation largely tracks NASAA’s Model Act which grants financial services firms immunity for making required reports of suspected financial exploitation and placing a permissive, temporary hold on disbursements if financial exploitation is suspected. New Jersey’s Act provides for mandatory reporting of suspected financial exploitation to the Bureau of Securities and applicable county adult protective services. The draft bill also permits a disbursement hold when financial exploitation of a senior or vulnerable adult is suspected. Finally, it allows third-party reporting to an individual “previously designated” by the customer.

New Jersey joins Arizona, California, New Hampshire, Maine and Virginia as states where “Report and Hold” legislation has been introduced in 2019. Florida is expected to follow when the regular session of the Florida Legislature resumes on March 5, 2019.