Financial Services Committee, Banking, Housing, and Urban Affairs Committee
Introduced
In Committee
On Floor
Passed Chamber
Enacted
The Financial Exploitation Prevention Act of 2025 amends the Investment Company Act of 1940, empowering registered open-end investment companies and their transfer agents to combat the financial exploitation of vulnerable adults. It allows these entities to elect to implement new requirements, including requesting and retaining emergency contact information for customers with direct-at-fund accounts. This contact information can be used to address suspected exploitation, confirm customer health, or identify legal representatives. A core provision permits the postponement of security redemptions for more than seven days if the company or agent reasonably believes a specified adult is experiencing financial exploitation. A specified adult is defined as an individual aged 65 or older, or an individual aged 18 or older with a mental or physical impairment preventing them from protecting their own interests. The initial postponement can last up to 15 business days and may be extended by an additional 10 business days if exploitation is still suspected, an internal review is initiated, and designated contacts are notified, unless they are the suspected exploiter. Companies and transfer agents must establish internal procedures for identifying and reporting exploitation, managing delayed proceeds, and ensuring compliance. They are also required to disclose the possibility of redemption postponement in their prospectuses and maintain detailed records of all such actions. Finally, the bill directs the Securities and Exchange Commission to consult with various financial regulators and submit a report to Congress within one year, recommending further legislative and regulatory changes to protect specified adults from financial exploitation.
Reported (Amended) by the Committee on Financial Services. H. Rept. 119-361.
Mr. Hill (AR) moved to suspend the rules and pass the bill, as amended.
Considered under suspension of the rules. (consideration: CR H4222-4226; text: CR H4222-4223)
Considered under suspension of the rules.
DEBATE - The House proceeded with forty minutes of debate on H.R. 2478.
At the conclusion of debate, the chair put the question on the motion to suspend the rules. Mr. Hill (AR) objected to the vote on the grounds that a quorum was not present. Further proceedings on the motion were postponed. The point of no quorum was considered as withdrawn.
Considered as unfinished business. (consideration: CR H4251-4252)
Considered as unfinished business.
On motion to suspend the rules and pass the bill, as amended Agreed to by the Yeas and Nays: (2/3 required): 414 - 2 (Roll no. 227).
Reported (Amended) by the Committee on Financial Services. H. Rept. 119-361.
Mr. Hill (AR) moved to suspend the rules and pass the bill, as amended.
Considered under suspension of the rules. (consideration: CR H4222-4226; text: CR H4222-4223)
Considered under suspension of the rules.
DEBATE - The House proceeded with forty minutes of debate on H.R. 2478.
At the conclusion of debate, the chair put the question on the motion to suspend the rules. Mr. Hill (AR) objected to the vote on the grounds that a quorum was not present. Further proceedings on the motion were postponed. The point of no quorum was considered as withdrawn.
Considered as unfinished business. (consideration: CR H4251-4252)
Considered as unfinished business.
On motion to suspend the rules and pass the bill, as amended Agreed to by the Yeas and Nays: (2/3 required): 414 - 2 (Roll no. 227).
Administrative law and regulatory proceduresCongressional oversightCrime victimsFraud offenses and financial crimesGovernment information and archivesGovernment studies and investigationsSecuritiesSecurities and Exchange Commission (SEC)
Financial Exploitation Prevention Act of 2025
USA119th CongressHR-2478| House
| Updated: 7/13/2026
The Financial Exploitation Prevention Act of 2025 amends the Investment Company Act of 1940, empowering registered open-end investment companies and their transfer agents to combat the financial exploitation of vulnerable adults. It allows these entities to elect to implement new requirements, including requesting and retaining emergency contact information for customers with direct-at-fund accounts. This contact information can be used to address suspected exploitation, confirm customer health, or identify legal representatives. A core provision permits the postponement of security redemptions for more than seven days if the company or agent reasonably believes a specified adult is experiencing financial exploitation. A specified adult is defined as an individual aged 65 or older, or an individual aged 18 or older with a mental or physical impairment preventing them from protecting their own interests. The initial postponement can last up to 15 business days and may be extended by an additional 10 business days if exploitation is still suspected, an internal review is initiated, and designated contacts are notified, unless they are the suspected exploiter. Companies and transfer agents must establish internal procedures for identifying and reporting exploitation, managing delayed proceeds, and ensuring compliance. They are also required to disclose the possibility of redemption postponement in their prospectuses and maintain detailed records of all such actions. Finally, the bill directs the Securities and Exchange Commission to consult with various financial regulators and submit a report to Congress within one year, recommending further legislative and regulatory changes to protect specified adults from financial exploitation.
Reported (Amended) by the Committee on Financial Services. H. Rept. 119-361.
Mr. Hill (AR) moved to suspend the rules and pass the bill, as amended.
Considered under suspension of the rules. (consideration: CR H4222-4226; text: CR H4222-4223)
Considered under suspension of the rules.
DEBATE - The House proceeded with forty minutes of debate on H.R. 2478.
At the conclusion of debate, the chair put the question on the motion to suspend the rules. Mr. Hill (AR) objected to the vote on the grounds that a quorum was not present. Further proceedings on the motion were postponed. The point of no quorum was considered as withdrawn.
Considered as unfinished business. (consideration: CR H4251-4252)
Considered as unfinished business.
On motion to suspend the rules and pass the bill, as amended Agreed to by the Yeas and Nays: (2/3 required): 414 - 2 (Roll no. 227).
Reported (Amended) by the Committee on Financial Services. H. Rept. 119-361.
Mr. Hill (AR) moved to suspend the rules and pass the bill, as amended.
Considered under suspension of the rules. (consideration: CR H4222-4226; text: CR H4222-4223)
Considered under suspension of the rules.
DEBATE - The House proceeded with forty minutes of debate on H.R. 2478.
At the conclusion of debate, the chair put the question on the motion to suspend the rules. Mr. Hill (AR) objected to the vote on the grounds that a quorum was not present. Further proceedings on the motion were postponed. The point of no quorum was considered as withdrawn.
Considered as unfinished business. (consideration: CR H4251-4252)
Considered as unfinished business.
On motion to suspend the rules and pass the bill, as amended Agreed to by the Yeas and Nays: (2/3 required): 414 - 2 (Roll no. 227).
Administrative law and regulatory proceduresCongressional oversightCrime victimsFraud offenses and financial crimesGovernment information and archivesGovernment studies and investigationsSecuritiesSecurities and Exchange Commission (SEC)