LANSING, Mich., March 3, 2023 — State Rep. Angela Witwer (Delta Township) introduced House Bill 4197 this week to help prevent the financial exploitation of older and vulnerable adults. It would allow broker-dealers and investment advisors to place temporary holds on disbursements of funds or securities when there is reason to believe that financial exploitation of a customer has occurred.
“We must do everything we can to prevent the financial exploitation of vulnerable populations,” said Witwer, who recently introduced her bill to repeal the retirement tax for the third time. “Ensuring that older Michiganders can retire with financial security has always been one of my top priorities as state representative. I will continue to work to provide them with the financial protections and support they need to have peace of mind.”
Financial exploitation can be wide-ranging and difficult to prevent — as a result, it often goes unreported. Witwer’s bill would strengthen the current Financial Industry Regulatory Authority/U.S. Securities and Exchange Commission (FINRA/SEC) rule by adding language allowing temporary holds on suspicious transactions. It would also allow extra protections for Michigan residents by codifying current FINRA/SEC rules in the Michigan Uniform Securities Act and providing local and state jurisdictions better tools to protect vulnerable adults.