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Bill H.5300
SECTION 1. The General Laws, as appearing in the 2024 Official Edition, are hereby amended
by inserting after chapter 167D the following
CHAPTER 167D 1/2 FINANCIAL EXPLOITATION OF VULNERABLE ADULTS
Section 1. As used in this chapter the following words shall, unless the context clearly requires
otherwise, have the following meanings:-
“Adult protective services agency”, any office, division, department, or unit in the
Commonwealth that is charged with the investigation of abuse, neglect, or exploitation of (i)
elder adults or (ii) a disabled person, as defined in section 1 of chapter 19C of the General Laws,
as so appearing.
“Commissioner”, the commissioner of the division of banks or a designee.
“Eligible adult”, (i) a person 60 years of age or older or (ii) a disabled person, as defined in
section 1 of said chapter 19C, as so appearing.
“Financial exploitation”, (i) the wrongful or unauthorized taking, withholding, appropriation, or
use of money, assets, or property of an eligible adult; or (ii) any act or omission taken by a
person, including through the use of a power of attorney, guardianship, or conservatorship of an
eligible adult, to obtain control, use, or benefit of the eligible adult’s money, assets, or property
to deprive the eligible adult of the ownership, use, benefit, or possession of his or her money,
assets, or property through (A) deception, intimidation or undue influence; or (B) by the use any
unethical or dishonest conduct; or (C) by converting money, assets, or property of the eligible
adult to deprive such eligible adult of the ownership, use, benefit, or possession of his or her
money, assets, or property.
“Financial institution”, (a) any bank, trust company, co-operative bank or savings bank, if
organized or exists under the laws of the Commonwealth or any other state or may transact
business in the Commonwealth, a national bank, federal savings bank or federal savings and loan
association, or any credit union that is organized or exists under the laws of the Commonwealth
or any other state, or federal credit union or may transact business in the Commonwealth, as
defined by section 1 of chapter 167 or section 1 of chapter 171 of the General Laws, as so
appearing.
“Qualified individual”, (i) any agent, employee, or person who serves in a supervisory,
compliance, or legal capacity for a financial institution, and (ii) employees eligible for immunity
in accordance with the Senior Safe Act of 2018.
“Agency” (i) the commissioner, (ii) the disabled person protection commission established
pursuant to section 2 of said chapter 19C, as so appearing, under the age of 60, and/or (iii) the
executive office of elder affairs, if the eligible adult is 60 years or older.
Section 2. If a financial institution or qualified individual reasonably believes that the financial
exploitation of an eligible adult may have occurred, may have been attempted, or is being
attempted, the financial institution or qualified individual may promptly notify the relevant
agency.
Section 3. If a financial institution or qualified individual acting in good faith and exercising
reasonable care, believes that financial exploitation of an eligible adult may have occurred, may
have been attempted, or is being attempted, a qualified individual may notify any third party
previously designated by the eligible adult reasonably associated with the adult permitted under
state or federal law, regulation or the rules organization of a self-regulatory organization;
provided, however, that a qualified individual shall not notify any designated third party that is
suspected of the financial exploitation or other abuse of the eligible adult.
Section 4. A qualified individual who, in good faith, exercising reasonable care, complies with
section 3, and did not participate or materially aid the alleged financial exploitation shall be
immune from any administrative or civil liability that might otherwise arise from such action.
Section 5. A financial institution may delay or stop a disbursement from, or a transaction in
connection with, an account of an eligible adult or an account on which an eligible adult is a
beneficiary if any qualified individual has reasonable cause to believe that, after initiating an
internal review of the requested disbursement or transaction and documenting the suspected
financial exploitation, that the requested disbursement or transaction may result in the financial
exploitation of the eligible adult, and the financial institution or qualified individual; (i) provides
written notification of the delay or stoppage and the reason for the delay or stoppage to all parties
authorized to transact business on the account immediately, but in no event more than 2 business
days after the requested disbursement or transaction, unless any such party is reasonably believed
to have engaged in suspected or attempted financial exploitation of the eligible adult; (ii)
provides notification of such delay or stoppage to the commissioner not more than 2 business
days after the requested disbursement or transaction; (iii) the relevant agency; (iv) continues its
internal review of the suspected or attempted financial exploitation of the eligible adult, as
necessary; (v) provides status updates, a statement of finding and final disposition of an
investigation upon request to the relevant agency and qualified individuals; and (vi) reports the
investigation's results to the commissioner within 10 business days after the day the financial
institution or qualified individual first delayed disbursement of the funds or the transaction. The
commissioner shall retain a digital or other record of each notice and report received under
clauses (ii), (iii), and (v) respectively, of this section.
Section 6. The authorization of any delay or stoppage of a disbursement or transaction pursuant
to section 5 shall expire upon the sooner of the determination by the financial institution that the
disbursement or transaction will not result in the financial exploitation of the eligible adult, or 21
business days after the date on which the financial institution delayed or stopped disbursement of
the funds or a transaction, unless the commissioner or either of the other agencies requests that
the financial institution extend the delay, in which case the delay shall expire no more than 30
business days after the date on which the financial institution first delayed or stopped
disbursement of the funds or a transaction unless otherwise terminated or further extended by
either of the other agencies or an order of a court of competent jurisdiction.
A court of competent jurisdiction may enter an order extending the delay or stoppage of a
disbursement of funds or transaction pursuant to this section, or may order other protective relief,
upon the petition of (i) the commissioner; (ii) the disabled persons protection commission
established pursuant to section 2 of said chapter 19C, as so appearing, if the eligible adult is
under the age of 60, or the executive office of elder affairs, if the eligible adult is 60 years or
older; (iii) a financial institution or qualified individual that initiated the delay pursuant to this
section; or (4) another interested party.
Section 7. A court of competent jurisdiction may order a financial institution or qualified
individual to provide access to or copies of records that are relevant to the suspected or attempted
financial exploitation of an eligible adult to the commissioner, the disabled persons protection
commission established pursuant to section 2 of said chapter 19C, as so appearing, if the eligible
adult is under the age of 60, or the executive office of elder affairs, if the eligible adult is 60
years or older, and law enforcement, either as part of a referral or to law enforcement pursuant
to an investigation. Such records may include historical records and records pertaining to the
most recent disbursement or transactions related to the suspected or attempted financial
exploitation of an eligible adult. Records made available to the agencies pursuant to this section
shall not be considered public records as defined in section 7 of chapter 4 or chapter 66 of the
General Laws, as so appearing, and shall not be available for public examination.
Section 8. A financial institution or qualified individual which, in good faith, exercising
reasonable care, complies with this chapter, and did not participate or materially aid the alleged
financial exploitation shall be immune from any administrative or civil liability that might
otherwise arise from such action.
Section 9. Nothing in this chapter shall limit or otherwise impede the authority of the secretary of
the Commonwealth from accessing or examining the books and records of a broker-dealer or
investment adviser as otherwise provided by law or conducting any lawful investigation into
potential violations of chapter 110A of the General Laws, as so appearing.
SECTION 2. The General Laws are hereby amended by inserting after chapter 110H the
following chapter:-
CHAPTER 110I FINANCIAL EXPLOITATION OF VULNERABLE ADULTS UNDER
BROKER-DEALER RELATIONSHIP
Section 1. As used in this chapter the following words shall, unless the context clearly requires
otherwise, have the following meanings:-
“Agencies”, (i) the secretary of the Commonwealth and (ii) the disabled persons protection
commission established pursuant to section 2 of said chapter 19C, as so appearing, if the eligible
adult is under the age of 60, or the executive office of elder affairs, if the eligible adult is 60
years or older.
“Agent, as defined pursuant to section 401 of said chapter 110A, as so appearing.
“Broker-Dealer”, as defined pursuant to section 401 of said chapter 110A, as so appearing.
“Eligible adult”, a person 60 years of age or older or a disabled person, as defined pursuant to
section 1 of chapter 19C, as so appearing.
“Financial exploitation”, (i) the wrongful or unauthorized taking, withholding, appropriation, or
use of money, assets, or property of an eligible adult; or (ii) any act or omission taken by a
person, including through the use of a power of attorney, guardianship, or conservatorship of an
eligible adult, to: (A) obtain control, through deception, intimidation or undue influence, over the
eligible adult’s money, assets, or property to deprive the eligible adult of the ownership, use,
benefit, or possession of his or her money, assets, or property; or (B) by the use of any unethical
or dishonest conduct; or (C) convert money, assets, or property of the eligible adult to deprive
such eligible adult of the ownership, use, benefit, or possession of his or her money, assets, or
property.
“Financial institution”, (a) any bank, trust company, co-operative bank or savings bank, if
organized or exists under the laws of the Commonwealth or any other state or may transact
business in the Commonwealth, a national bank, federal savings bank or federal savings and loan
association, or any credit union that is organized or exists under the laws of the Commonwealth
or any other state, or federal credit union or may transact business in the Commonwealth, as
defined by section 1 of chapter 167 or section 1 of chapter 171 of the General Laws, as so
appearing.
“Investment adviser”, as defined pursuant to section 401 of said chapter 110A, as so appearing.
“Investment adviser representative, as defined pursuant to section 401 of said chapter 110A, as
so appearing.
“Qualified investment individual”
, (i) any agent, broker-dealer, investment adviser, investment-
adviser representative, broker-dealer, or person who serves in a supervisory, compliance, investor
protection or legal capacity for a broker-dealer or investment adviser, and (ii) employees eligible
for immunity in accordance with the Senior Safe Act of 2018.
Section 2. If a qualified investment individual reasonably believes that the financial exploitation
of an eligible adult may have occurred, may have been attempted, or is being attempted, the
qualified investment individual shall promptly notify the (i) secretary of the Commonwealth and
(ii) the disabled person protection commission established pursuant to section 2 of said chapter
19C, as so appearing, if the eligible adult is under the age of 60, or the executive office of elder
affairs, if the eligible adult is 60 years or older.
Section 3. A qualified investment individual who in good faith, exercising reasonable care, and
did not participate or materially aid the alleged financial exploitation makes a disclosure of
information pursuant to section 2 shall be immune from administrative or civil liability that
might otherwise arise from such disclosure or for any failure to notify the customer of the
disclosure.
Section 4. If a qualified investment individual, acting in good faith and exercising reasonable
care, believes that financial exploitation of an eligible adult may have occurred, may have been
attempted, or is being attempted, a qualified investment individual may notify any third party
previously designated by the eligible adult or reasonably associated with the adult permitted
under state or federal law, regulation or the rules of a self-regulatory organization; provided,
however, that a qualified investment individual shall not notify any designated third party that is
suspected of the financial exploitation or other abuse of the eligible adult.
Section 5. A qualified investment individual who, in good faith, exercising reasonable care,
complies with section 4 and did not participate or materially aid the alleged financial exploitation
shall be immune from any administrative or civil liability that might otherwise arise from such
disclosure.
Section 6. A financial institution may delay or stop a disbursement or transaction from an
account of an eligible adult or an account on which an eligible adult is a beneficiary if (i) a
qualified investment individual has reasonable cause to believe that, after initiating an internal
review of the requested disbursement or transaction and the suspected financial exploitation, that
the requested disbursement or transaction may result in the financial exploitation of the eligible
adult, and the (ii) qualified investment individual:
(A) provides written notification of the delay and the reason for the delay to all parties authorized
to transact business on the account immediately, but in no event more than 2 business days after
the delayed disbursement or transaction, unless any such party is reasonably believed to have
engaged in suspected or attempted financial exploitation of the eligible adult;
(B) provides notification of such delay to the agencies immediately but in no event not more than
2 business days after the delayed disbursement or transaction; and,
(C) continues its internal review of the suspected or attempted financial exploitation of the
eligible adult, as necessary, and provides status updates, a statement of finding and final
disposition of an investigation upon request to the agencies and to qualified individuals.
Section 7. The authorization of any delay or stoppage of a disbursement or transaction pursuant
to section 6 shall expire upon the sooner of: (i) the determination by the financial institution or
qualified investment individual that the disbursement or transaction will not result in the
financial exploitation of the eligible adult; or, (ii) 21 days from the date the financial institution
or qualified investment individual delayed disbursement of the funds or a transaction, unless
either of the agencies requests that the financial institution extend the delay, in which case the
delay shall expire no more than 30 business days after the date on which the financial institution
first delayed disbursement of the funds or a transaction, unless otherwise terminated or further
extended by either of the agencies or an order of a court of competent jurisdiction.
A court of competent jurisdiction may enter an order extending the delay of a disbursement of
funds or transaction pursuant to this section, or may order other protective relief, upon the
petition of (i) the secretary of the Commonwealth (ii) the disabled persons protection
commission established pursuant to section 2 of said chapter 19C, as so appearing, if the eligible
adult is under the age of 60, or the executive office of elder affairs, if the eligible adult is 60
years or older; (iii) the financial institution or qualified investment individual that initiated the
delay pursuant to this section; or (iv) another interested party.
Section 8. A court of competent jurisdiction may order a financial institution, or qualified
investment individual to provide access to or copies of records that are relevant to the suspected
or attempted financial exploitation of an eligible adult to the state secretary, the disabled persons
protection commission established pursuant to section 2 of said chapter 19C, as so appearing, if
the eligible adult is under the age of 60, or the executive office of elder affairs, if the eligible
adult is 60 years or older, and law enforcement, either as part of a referral or to law enforcement,
or upon request of the agency or law enforcement pursuant to an investigation. Such records may
include historical records and records pertaining to the most recent disbursement or transactions
related to the suspected or attempted financial exploitation of an eligible adult. Records made
available to agencies pursuant to this section shall not be considered public records as defined in
said section 7 of said chapter 4 or said chapter 66, as so appearing, and shall not be available for
public examination.
Section 9. A financial institution or qualified investment individual who, in good faith,
exercising reasonable care, complies with this chapter and did not participate or materially aid
the alleged financial exploitation shall be immune from any administrative or civil liability that
might otherwise arise from such action.
Section 10. Notwithstanding Section 9, nothing in Section 9 shall limit or shield, in any manner,
a qualified individual from any administrative or civil liability for any claim, for participating in
or materially aiding the financial exploitation of an eligible adult. Any such civil claim may be
asserted by the eligible adult, or on his or her behalf by an appropriate guardian or representative
who is not involved in or otherwise suspected of participating in the financial exploitation of the
eligible adult, by filing a civil action in a court of competent jurisdiction. Such a claimant shall
have the burden of proving that the defendant is not eligible for the immunity provided in
Section 9.
Section 11. Nothing in this chapter shall limit or otherwise impede the authority of the secretary
of the Commonwealth from accessing or examining the books and records of a financial
institution as otherwise provided by law or conducting any lawful investigation into potential
violations of said chapter 110A, as so appearing.
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