{"format":1,"id":"119-hr-2478","congress":119,"number":"H.R. 2478","kind":"bill","group":"bills","title":"Financial Exploitation Prevention Act of 2025","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":"Short Titles from RFS (Referred to Senate) bill text","title":"Financial Exploitation Prevention Act of 2025"},{"type":"Short Title(s) as Passed House","title":"Financial Exploitation Prevention Act of 2025"},{"type":"Official Title from EH (Engrossed in House) bill text","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":"Short Title(s) as Reported to House","title":"Financial Exploitation Prevention Act of 2025"},{"type":"Display Title","title":"Financial Exploitation Prevention Act of 2025"},{"type":"Short Title(s) as Introduced","title":"Financial Exploitation Prevention Act of 2025"}],"outcome":"passed_house","law_number":null,"introduced":"2025-03-27","chambers":{"house":{"status":"roll_call","date":"2026-06-25","vote":{"id":"119-2026-h227","question":"On Motion to Suspend the Rules and Pass, as Amended","title":"Financial Exploitation Prevention Act","result":"Passed","yea":414,"nay":2,"present":0,"not_voting":14,"source":"https://clerk.house.gov/evs/2026/roll227.xml"}},"senate":{"status":"pending","date":null,"vote":null}},"president":{"status":"not_yet","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":"2026-07-13"},"nominees":null,"amendments":[],"other_votes":[],"crs_summary":{"date":"2025-03-27","stage":"Introduced in House","blocks":[{"k":"h","t":"Financial Exploitation Prevention Act of 2025"},{"k":"p","t":"This bill establishes procedures for delaying the redemption of certain securities if an investment company or agent believes that an older individual or an individual with certain impairments has been financially exploited."},{"k":"p","t":"Specifically, the bill allows for the delay of the redemption of a security issued by an open-end investment management company and serviced by a transfer agent if the company or agent reasonably believes the redemption involves the financial exploitation of an individual (1) age 65 or older, or (2) age 18 or older who is unable to protect his or her own interests due to a mental or physical impairment. (Open-end investment management companies offer securities in pooled investment vehicles such as mutual funds. Transfer agents facilitate certain transactions for corporations and investment companies, including dividend distribution and change of securities ownership.)"},{"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. A state regulator, appropriate administrative agency, or court may extend this period. In the event of delay, the company must hold the amounts related to the redemption in a demand deposit account. The bill also establishes notification requirements."},{"k":"p","t":"The bill requires the registered open-end investment company and transfer agent to notify the Securities and Exchange Commission (SEC) if they elect to comply with the procedures established under this bill."},{"k":"p","t":"Additionally, the SEC must make recommendations to address the financial exploitation of these adults."}],"words":250},"summary":{"main_subject":{"text":"Amends the Investment Company Act of 1940 to let open-end investment companies and their transfer agents postpone redemption payments when they reasonably believe a holder aged 65 or older, or an adult with a certain impairment, is subject to financial exploitation.","cites":[{"label":"Sec. 2","href":"https://www.congress.gov/bill/119th-congress/house-bill/2478/text/eh#HD3A72D565556450DB58F8185EE6BC18E"}]},"core_areas":["Postponing redemptions of open-end investment company securities in suspected financial exploitation of specified adults","Trusted contact information for direct-at-fund accounts","Securities and Exchange Commission report on regulatory and legislative recommendations"],"what_it_does":[{"text":"Lets a registered open-end investment company or its transfer agent elect to comply with the new requirements by notifying the Securities and Exchange Commission.","cite":{"label":"Sec. 2","href":"https://www.congress.gov/bill/119th-congress/house-bill/2478/text/eh#HD3A72D565556450DB58F8185EE6BC18E"}},{"text":"Requires electing companies and transfer agents to ask holders of direct-at-fund accounts for the name and contact information of at least one adult, to keep that information, and to tell the holder in writing how that person may be contacted.","cite":{"label":"Sec. 2","href":"https://www.congress.gov/bill/119th-congress/house-bill/2478/text/eh#HD3A72D565556450DB58F8185EE6BC18E"}},{"text":"Allows a company or transfer agent to postpone payment on a redemption for more than seven days, up to 15 business days, if it reasonably believes the holder is a specified adult and financial exploitation has occurred, is occurring, or has been attempted.","cite":{"label":"Sec. 2","href":"https://www.congress.gov/bill/119th-congress/house-bill/2478/text/eh#HD3A72D565556450DB58F8185EE6BC18E"}},{"text":"Allows an additional 10 business days of postponement if the company or agent gives written notice to the named contacts within 2 days, starts an internal review, holds the amounts in a demand deposit account, and keeps records.","cite":{"label":"Sec. 2","href":"https://www.congress.gov/bill/119th-congress/house-bill/2478/text/eh#HD3A72D565556450DB58F8185EE6BC18E"}},{"text":"Defines a specified adult as an individual age 65 or older, or an individual age 18 or older whom the company or agent reasonably believes has a mental or physical impairment that leaves the individual unable to protect the individual's own interests.","cite":{"label":"Sec. 2","href":"https://www.congress.gov/bill/119th-congress/house-bill/2478/text/eh#HD3A72D565556450DB58F8185EE6BC18E"}},{"text":"Requires the Securities and Exchange Commission, within 1 year of enactment and in consultation with named agencies and organizations, to send 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/119th-congress/house-bill/2478/text/eh#HD3A72D565556450DB58F8185EE6BC18E"}}],"unexpected":[],"version":{"type":"Engrossed in House","date":"2026-06-25","rule":"passed","href":"https://www.congress.gov/bill/119th-congress/house-bill/2478/text/eh"},"current":true,"model":"claude-sonnet-5-5","approved":"2026-10-01","approved_by":"desk"},"sources":{"congress_gov":"https://www.congress.gov/bill/119th-congress/house-bill/2478","text":"https://www.congress.gov/bill/119th-congress/house-bill/2478/text"},"card":{"image":"card/item/119-hr-2478.png","v":"f76b4463cb69","alt":"Votes on Record. H.R. 2478, 119th Congress: Financial Exploitation Prevention Act of 2025. House: 414 Yea, 2 Nay. Senate: not yet considered. Outcome: Passed House, 25 Jun 2026."}}