House approves two financial services bills introduced by Wagner, Huizenga

U.S. Reps. Ann Wagner (R-MO) and Bill Huizenga (R-MI) applauded action by the U.S. House of Representatives, which on Jan. 30 passed their bipartisan financial services-related bills.

The House on Monday voted 419-0 to approve the Financial Exploitation Prevention Act of 2023, H.R. 500, which Rep. Wagner sponsored on Jan. 25 with four original cosponsors, including Rep. Huizenga and U.S. Reps. Bryan Steil (R-WI) and Josh Gottheimer (D-NJ). 

Specifically, H.R. 500 would allow for the delay of the redemption of a security issued by an open-end investment management company if the company reasonably thinks the redemption involves the financial exploitation of an individual age 65 or older or an individual age 18 or older who is unable to protect his or her own interests, according to the congressional record bill summary.

“The Financial Exploitation Prevention Act will provide our vulnerable investors with an important layer of protection to help make sure that they receive the hard-earned savings that they have built up over the years,” said Rep. Wagner, who called financial exploitation of seniors elder abuse.

“Tragically, about 20 percent of senior investors fall prey to financial fraud, losing an estimated $2.9 billion annually,” she said. “I hope the Senate takes up this bill immediately so vulnerable investors have the protections they deserve.”

If enacted, H.R. 500 also would require the Securities and Exchange Commission to report to Congress on recommendations for legislative and regulatory changes on how to combat financial exploitation of seniors and vulnerable adults.

The chamber on Monday also gave voice vote approval to the Credit Union Board Modernization Act, H.R. 582, which Rep. Huizenga cosponsored on Jan. 26 alongside bill sponsor U.S. Rep. Juan Vargas (D-CA) to revise the required frequency of meetings held by a credit union’s board of directors. The bill gained 59 other cosponsors.

H.R. 582 would require that new credit unions and credit unions with a low soundness rating meet monthly, according to the congressional record bill summary, and all other credit unions must hold at least six meetings annually, with at least one meeting held during each fiscal quarter. Currently, all credit union boards must meet at least once a month.

“I am happy to report that the House passed the Credit Union Modernization Act that I introduced with @RepJuanVargas,” tweeted Rep. Huizenga on Monday. “This bipartisan, commonsense reform will help strengthen the local economy in southwest Michigan and communities across America!”

Both bills now head to the U.S. Senate for consideration.