Firms Urged to Use New Reporting Form for Suspected Financial Exploitation

Dec 5

The Texas State Securities Board has developed a form to help financial firms report critical information about the suspected financial exploitation of vulnerable adults.

Reporting this type of suspected financial exploitation is required under Section 45 of the Texas Securities Act. Section 45 was added to the Act because of Texas House Bill 3921, which took effect Sept. 1.

“Although the form is optional, it is a valuable guide for firms to provide the most important information on situations where they suspect a vulnerable adult is being exploited,” said Texas Securities Commissioner Travis J. Iles.

Section 45 requires securities dealers and investment advisers to adopt internal policies and procedures to assess whether the firm should place a hold on transactions involving the account of a vulnerable adult. The procedures also require reporting of financial exploitation to the Securities Commissioner.