{"format":1,"id":"118-hr-500","congress":118,"number":"H.R. 500","kind":"bill","group":"bills","title":"Financial Exploitation Prevention Act of 2023","title_source":"Short Title(s) as Passed House","official_title":"To amend the Investment Company Act of 1940 to postpone the date of payment or satisfaction upon redemption of certain securities in the case of the financial exploitation of specified adults, and for other purposes.","titles":[{"type":"Official Title as Introduced","title":"To amend the Investment Company Act of 1940 to postpone the date of payment or satisfaction upon redemption of certain securities in the case of the financial exploitation of specified adults, and for other purposes."},{"type":"Display Title","title":"Financial Exploitation Prevention Act of 2023"},{"type":"Short Titles from RFS (Referred to Senate) bill text","title":"Financial Exploitation Prevention Act of 2023"},{"type":"Short Title(s) as Introduced","title":"Financial Exploitation Prevention Act of 2023"},{"type":"Short Title(s) as Passed House","title":"Financial Exploitation Prevention Act of 2023"}],"outcome":"passed_house","law_number":null,"introduced":"2023-01-25","chambers":{"house":{"status":"roll_call","date":"2023-01-30","vote":{"id":"118-2023-h94","question":"On Motion to Suspend the Rules and Pass","title":"Financial Exploitation Prevention Act","result":"Passed","yea":419,"nay":0,"present":0,"not_voting":15,"source":"https://clerk.house.gov/evs/2023/roll094.xml"}},"senate":{"status":"na","date":null,"vote":null}},"president":{"status":"na","date":null},"vice_president_tie_breaker":null,"latest_action":{"text":"Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.","date":"2023-01-31"},"nominees":null,"amendments":[],"other_votes":[],"crs_summary":{"date":"2023-01-30","stage":"Passed House","blocks":[{"k":"h","t":"Financial Exploitation Prevention Act of 2023"},{"k":"p","t":"This bill addresses the redemption of securities involving the potential financial exploitation of an adult by allowing an open-end investment company to elect to comply with certain procedures. (Open-end investment management companies offer securities in pooled investment vehicles such as mutual funds.)"},{"k":"p","t":"Specifically, the bill allows for the delay of the redemption of a security issued by an open-end investment management company if the company reasonably believes 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."},{"k":"p","t":"The company may initially delay the redemption for up to 15 days and, upon making a determination of exploitation, may delay the redemption an additional 10 days. In the event of delay, the company must hold the amounts related to the redemption in a demand deposit account."},{"k":"p","t":"Additionally, the Securities and Exchange Commission must make legislative and regulatory recommendations to address the financial exploitation of these adults."}],"words":170},"summary":{"main_subject":{"text":"Amends Section 22 of the Investment Company Act of 1940 to let registered open-end investment companies and their transfer agents postpone redemption payments when they reasonably believe a specified adult is subject to financial exploitation, and requires a Securities and Exchange Commission report.","cites":[{"label":"Sec. 2","href":"https://www.congress.gov/bill/118th-congress/house-bill/500/text/eh#H059EF8159C8F435884D65D4FF97E59E7"}]},"core_areas":["Postponement of open-end investment company redemptions in cases of suspected financial exploitation","Trusted contact information for direct-at-fund accounts","Internal procedures and record retention for open-end investment companies and transfer agents","Securities and Exchange Commission report on financial exploitation of specified adults"],"what_it_does":[{"text":"Lets a registered open-end investment company and its transfer agent elect, by notifying the Securities and Exchange Commission, to follow the new direct-at-fund account and redemption postponement requirements.","cite":{"label":"Sec. 2","href":"https://www.congress.gov/bill/118th-congress/house-bill/500/text/eh#H059EF8159C8F435884D65D4FF97E59E7"}},{"text":"Requires an electing company and transfer agent to ask each direct-at-fund account holder for the name and contact information of at least one adult, to retain it, and to disclose in writing that this person may be contacted about the account.","cite":{"label":"Sec. 2","href":"https://www.congress.gov/bill/118th-congress/house-bill/500/text/eh#H059EF8159C8F435884D65D4FF97E59E7"}},{"text":"Allows postponing redemption payment beyond seven days, for up to 15 business days, if the company or agent reasonably believes a specified adult (age 65 or older, or an adult with a reasonably believed impairment) requested it and financial exploitation has occurred, is occurring, or was attempted.","cite":{"label":"Sec. 2","href":"https://www.congress.gov/bill/118th-congress/house-bill/500/text/eh#H059EF8159C8F435884D65D4FF97E59E7"}},{"text":"Allows an additional 10 business days if the company or agent makes the required determination, notifies the specified contacts in writing within 2 days, starts an internal review, and holds the amounts in a demand deposit account; a State regulator, administrative agency or court may also extend the period.","cite":{"label":"Sec. 2","href":"https://www.congress.gov/bill/118th-congress/house-bill/500/text/eh#H059EF8159C8F435884D65D4FF97E59E7"}},{"text":"Requires companies and transfer agents to establish procedures for carrying out these provisions, to note the possible postponement in each prospectus or statement of additional information, and to retain records and make them available to the Commission on request.","cite":{"label":"Sec. 2","href":"https://www.congress.gov/bill/118th-congress/house-bill/500/text/eh#H059EF8159C8F435884D65D4FF97E59E7"}},{"text":"Requires the Securities and Exchange Commission, within 1 year of enactment and in consultation with the listed financial regulators and organizations, to submit to Congress a report recommending regulatory and legislative changes to address financial exploitation of specified adults.","cite":{"label":"Sec. 2","href":"https://www.congress.gov/bill/118th-congress/house-bill/500/text/eh#H059EF8159C8F435884D65D4FF97E59E7"}}],"unexpected":[],"version":{"type":"Engrossed in House","date":"2023-01-30","rule":"passed","href":"https://www.congress.gov/bill/118th-congress/house-bill/500/text/eh"},"current":true,"model":"claude-sonnet-5-5","approved":"2026-10-02","approved_by":"checks"},"sources":{"congress_gov":"https://www.congress.gov/bill/118th-congress/house-bill/500","text":"https://www.congress.gov/bill/118th-congress/house-bill/500/text"},"card":{"image":"card/item/118-hr-500.png","v":"6d97b0364101","alt":"Votes on Record. H.R. 500, 118th Congress: Financial Exploitation Prevention Act of 2023. House: 419 Yea, 0 Nay. Outcome: Passed House, 30 Jan 2023."}}