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Financial Exploitation Prevention Act of 2025

USA119th CongressS-2840| Senate 
| Updated: 9/17/2025
Bill Hagerty

Bill Hagerty

Republican Senator

Tennessee

Cosponsors (7)
Tammy Duckworth (Democratic)Ruben Gallego (Democratic)Adam B. Schiff (Democratic)John W. Hickenlooper (Democratic)Tammy Baldwin (Democratic)Susan M. Collins (Republican)Steve Daines (Republican)

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 to protect vulnerable investors from financial exploitation. This bill allows registered open-end investment companies and their transfer agents to postpone the redemption of securities for "specified adults" when there is a reasonable belief of financial exploitation. Companies may elect to request and retain contact information for a trusted individual from non-institutional direct-at-fund account holders, disclosing that this contact may be used to address potential exploitation or confirm customer information. The initial postponement of a redemption payment can last for up to 15 business days . This period can be extended by an additional 10 business days if the company continues to reasonably believe exploitation is occurring, initiates an internal review, and notifies the designated contact person, unless that person is suspected of involvement. State regulators or courts also have the authority to further extend these postponement periods, and companies must establish internal procedures for these actions, including record retention. A "specified adult" is defined as an individual aged 65 or older, or an adult aged 18 or older with a mental or physical impairment that prevents them from protecting their own interests. The bill also mandates that the Securities and Exchange Commission, in consultation with various financial regulatory bodies, submit a report to Congress within one year. This report will include recommendations for necessary regulatory and legislative changes to further address the financial exploitation of specified adults.
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Timeline

Bill from Previous Congress

S 118-1481
Financial Exploitation Prevention Act of 2023
Sep 17, 2025
Introduced in Senate
Sep 17, 2025
Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
Nov 4, 2025

Latest Companion Bill Action

HR 119-2478
Placed on the Union Calendar, Calendar No. 313.
  • Bill from Previous Congress

    S 118-1481
    Financial Exploitation Prevention Act of 2023


  • September 17, 2025
    Introduced in Senate


  • September 17, 2025
    Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.


  • November 4, 2025

    Latest Companion Bill Action

    HR 119-2478
    Placed on the Union Calendar, Calendar No. 313.

Finance and Financial Sector

Related Bills

  • HR 119-2478: Financial Exploitation Prevention Act of 2025

Financial Exploitation Prevention Act of 2025

USA119th CongressS-2840| Senate 
| Updated: 9/17/2025
The "Financial Exploitation Prevention Act of 2025" amends the Investment Company Act of 1940 to protect vulnerable investors from financial exploitation. This bill allows registered open-end investment companies and their transfer agents to postpone the redemption of securities for "specified adults" when there is a reasonable belief of financial exploitation. Companies may elect to request and retain contact information for a trusted individual from non-institutional direct-at-fund account holders, disclosing that this contact may be used to address potential exploitation or confirm customer information. The initial postponement of a redemption payment can last for up to 15 business days . This period can be extended by an additional 10 business days if the company continues to reasonably believe exploitation is occurring, initiates an internal review, and notifies the designated contact person, unless that person is suspected of involvement. State regulators or courts also have the authority to further extend these postponement periods, and companies must establish internal procedures for these actions, including record retention. A "specified adult" is defined as an individual aged 65 or older, or an adult aged 18 or older with a mental or physical impairment that prevents them from protecting their own interests. The bill also mandates that the Securities and Exchange Commission, in consultation with various financial regulatory bodies, submit a report to Congress within one year. This report will include recommendations for necessary regulatory and legislative changes to further address the financial exploitation of specified adults.
View Full Text

Suggested Questions

Get AI-generated questions to help you understand this bill better

Timeline

Bill from Previous Congress

S 118-1481
Financial Exploitation Prevention Act of 2023
Sep 17, 2025
Introduced in Senate
Sep 17, 2025
Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
Nov 4, 2025

Latest Companion Bill Action

HR 119-2478
Placed on the Union Calendar, Calendar No. 313.
  • Bill from Previous Congress

    S 118-1481
    Financial Exploitation Prevention Act of 2023


  • September 17, 2025
    Introduced in Senate


  • September 17, 2025
    Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.


  • November 4, 2025

    Latest Companion Bill Action

    HR 119-2478
    Placed on the Union Calendar, Calendar No. 313.
Bill Hagerty

Bill Hagerty

Republican Senator

Tennessee

Cosponsors (7)
Tammy Duckworth (Democratic)Ruben Gallego (Democratic)Adam B. Schiff (Democratic)John W. Hickenlooper (Democratic)Tammy Baldwin (Democratic)Susan M. Collins (Republican)Steve Daines (Republican)

Banking, Housing, and Urban Affairs Committee

Finance and Financial Sector

Related Bills

  • HR 119-2478: Financial Exploitation Prevention Act of 2025
  • Introduced
  • In Committee
  • On Floor
  • Passed Chamber
  • Enacted