The NASAA’s research has revealed that about 75% of state securities regulators say they do not believe the financial industry is doing enough to prevent senior financial fraud. Moreover, of the cases that do get reported, the majority of regulators (97%) say that the abuses have gone undetected far too long. In Virginia alone, financial exploitation steals victims of an estimated USD 1.2 billion a year, according to the states Department for Aging and Rehabilitative Services.
In a survey of over 60 broker-dealers in June 2017, about 70% said they did not have any policies in place that were specifically tailored to seniors.
Nevertheless, there has been some improvement toward getting more protections put in place. About half of state securities agencies have started to implement newly established rules requiring financial advisors who suspect fraud to report it, according to Time. Also, a new industry rule is going into effect in February 2018 and will require brokerage companies to ask all customers for the name of a trusted contact who can act as a resource when a financial advisor suspects that the clients mental faculties have declined.
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