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Committee expands protections for vulnerable adults in securities transactions (SB151)
Summary
The committee passed SB151, which expands definitions and protections allowing broker‑dealers and investment advisers to investigate and act on suspected financial exploitation of vulnerable adults, including some people under 65. The change aims to give industry tools to detect and report exploitation earlier.
The Insurance & Commerce Committee approved Senate Bill 151, which the sponsor described as mostly cleanup language with a substantive addition to help protect vulnerable adults from financial exploitation.
Senator Desmaine said section 4 expands protections to allow broker‑dealers and investment advisers to investigate suspected exploitation and to use protective provisions when they believe a client is at risk. The bill expands the definition of "vulnerable adult" to include certain people under age 65 — for example, recently widowed individuals — when they are considered susceptible to financial exploitation.
A committee member asked where the bill defines 'vulnerable adult'; the sponsor answered it is defined on page 3 of the bill and outlined the criteria (age 65 or older, or subject to supervision by adult protective services or otherwise considered susceptible). No one from the public spoke for or against the bill. The committee passed SB151 by voice vote.
Supporters said the measure gives industry participants a clearer legal pathway to investigate and report suspicious transactions to protect at‑risk clients.
