Bipartisan legislation cosponsored on March 11 by U.S. Sen. Susan Collins (R-ME) aims to prevent financial scams against America’s senior citizens and help them to protect their savings.
The Senior Security Act, S. 4055, which is sponsored by U.S. Sen. Andy Kim (D-NJ), would create the interdivisional Senior Investor Task Force within the U.S. Securities and Exchange Commission (SEC) to bolster protections and safeguards for senior investors.
“As a senator representing the oldest state in the country, I have consistently worked to fight fraud and financial exploitation targeted at older Americans,” Sen. Collins said. “This bipartisan bill would ensure that the Securities and Exchange Commission has the expertise needed to coordinate the efforts of state authorities and regulators to reduce the risk of senior investors being defrauded.”
Specifically, the Senior Security Act would establish the task force at the SEC to identify challenges that senior investors encounter, including problems associated with financial exploitation and cognitive decline, and to identify areas in which senior investors would benefit from changes at the SEC or the rules of self-regulatory organizations.
Additionally, S. 4055 would require the task force to coordinate, as appropriate, with other offices within the SEC and other task forces that may be established within the commission, self-regulatory organizations, and the Elder Justice Coordinating Council, and to consult with state securities and law enforcement authorities, state insurance regulators, and other federal agencies.
The task force also would have to submit a required biennial report to Congress that includes a summary of recent trends and innovations that have impacted the investment landscape for senior investors, and includes recommendations for changes to the rules or guidance of the SEC and self-regulatory organizations and legislative actions to resolve problems encountered by senior investors, according to the senators.
“Scammers are preying on our seniors, stealing billions of dollars from Americans’ hard-earned retirement savings,” said Sen. Kim. “We need this legislation and task force to take targeted and thorough action to confront these crimes and stand up for our nation’s seniors.”
The Senior Security Act has been endorsed by AARP and is under consideration by the U.S. Senate Banking, Housing, and Urban Affairs Committee.