Compliance Spotlight: Senior Safe Act
Senior Safe Act
On May 24, 2018, the Senior Safe Act (the act) was signed into law as Section 303 of the Economic Growth, Regulatory Relief, and Consumer Protection Act. Subject to certain conditions, the act provides immunity from liability, including in any civil or administrative proceeding, to a covered financial institution and certain of their employees or other individuals affiliated or associated with the institution for reporting suspected exploitation of a senior citizen to covered agencies.
In addition to other requirements, the specified employees or other individuals affiliated or associated with a covered institution must receive the training required by the act to qualify for immunity. Reporting suspected senior financial exploitation under the act is optional, but institutions must comply with requirements of the act for immunity to apply.
Additional requirements under the act are discussed in the following Q&A:
🅠 Which individuals are eligible for immunity, and how can an individual obtain such immunity under the act?
🅐 An individual can obtain immunity from disclosure of suspected exploitation of a senior citizen to a covered agency if:
- the individual received the training specified in the act (described next),
- at the time of disclosure, the individual served as a supervisor or in a compliance or legal function (including as a Bank Secrecy Act officer) for, or in the case of a registered representative, investment adviser representative, or insurance producer, was affiliated or associated with, a covered financial institution, and
- at the time of disclosure, the individual made the disclosure in good faith and with reasonable care.
🅠 Which institutions are eligible for immunity, and how can a covered financial institution obtain such immunity under the act?
🅐 A covered financial institution is:
- a depository institution
- a credit union
- an investment adviser
- a broker-dealer
- an insurance company
- an insurance agency, or
- a transfer agent.
Under the act, a covered financial institution can obtain immunity from disclosure of suspected exploitation of a senior citizen to a covered agency made by an individual described previously if:
- at the time of disclosure, the individual was employed by, or, in the case of a registered representative, investment adviser representative, or insurance producer, was affiliated or associated with, the covered financial institution, and
- before disclosure, the individual was provided the training specified in the act (described next).
🅠 What is a covered agency?
🅐 Covered agencies include state and federal regulatory agencies, law enforcement agencies, and local agencies responsible for providing adult protective services. The act defines covered agency as:
- the Federal Reserve Board, the Federal Deposit Insurance Corporation, the Office of the Comptroller of the Currency, the National Credit Union Administration, and the Consumer Financial Protection Bureau
- a law enforcement agency
- a state or local agency responsible for administering adult protective service laws
- a state financial regulatory agency
- certain securities associations, and
- the Securities and Exchange Commission.
🅠 What are the training requirements under the act?
🅐 To qualify for immunity from suit, the individuals specified previously must receive training, among other requirements, if the individual:
- may come into contact with a senior citizen as a regular part of his or her professional duties, or
- may review or approve the financial documents, records, or transactions of a senior citizen in connection with providing financial services to a senior citizen.
The training may be provided by a covered financial institution or a third party selected by the covered institution. The training generally must:
- review common signs of financial exploitation of a senior citizen
- explain how to identify and report suspected senior citizen exploitation
- discuss the need to protect each customer’s privacy and respect each customer’s integrity, and
- be appropriately tailored to an individual’s job responsibilities.
🅠 When must the training be provided?
🅐 Generally, training must be provided as soon as possible. For individuals who become employed, or affiliated or associated with, a covered financial institution after the effective date of the act, training must be provided within one year from the date of employment, affiliation, or association.
🅠 What are the recordkeeping requirements for the training?
🅐 Covered financial institutions are required to maintain a record of the individuals described previously who are employed by, or affiliated or associated with, the covered institution and have completed the training. Upon request, the covered financial institution must provide such records to a covered agency with examination authority over the institution. In addition, the content of the training must be maintained by the covered financial institution and, upon request, be made available to a covered agency with examination authority over the institution. The covered institution, however, is not required to maintain or make available such content with respect to an individual who is no longer employed by, or affiliated or associated with, the institution.
🅠 When did the law become effective?
🅐 The act became effective on May 24, 2018