On June 14, 2021, Texas modified its law protecting elder and vulnerable adults from financial exploitation by clarifying the law’s wording and expediting the process for placing holds. The enacted Texas House Bill 4477 allows firms to place a transaction hold on a vulnerable adult’s account if the firm (i) submits a report of the suspected financial exploitation to the Securities Commissioner and the Department of Family and Protective Services; and (ii) has reason to believe the transaction is related to the suspected exploitation detailed in the report. The bill clarifies confusion around the current law’s wording by stating that a report does not have to be submitted “prior to” placing the hold, as long as a report is filed when the hold is placed.
In addition, the transaction hold time has changed to up to 10 business days after the date the hold is placed, as opposed to the 10 business days after the submission of a report, and such time period may be shortened by a court order. The law will become effective September 1, 2021.
Further details regarding state statutes in this area can be found in Bressler’s interactive Senior and Vulnerable Investor Issues Map.