NAIFA policy backs measures protecting older Americans from financial fraud

NAIFA’s emphasis on advocacy aims to keep our members in business by promoting positive legislative and regulatory outcomes. Often, this involves opposing laws or regulations, such as the current draft of the Department of Labor’s “best interests” rule proposal, which would harm advisors and their clients. We also support smart laws and regulations that protect our industry and make it easier for advisors to do their jobs.

A good example of this involves regulation that would protect senior citizens from financial fraud and abuse.

According to an article in the Wall Street Journal (in which NAIFA is quoted), financial fraud involving older Americans is expected to increase dramatically. As the population ages, the billions of dollars lost each year to financial abuse will increase steadily for years to come.

The Journal will be among countless news outlets that will continue to follow and file more reports on elder fraud. Through such reports, NAIFA will assure consumers that our members are on the right side of the story.

For instance, this past fall, NAIFA submitted comments to the North American Securities Administrators Association strongly supporting efforts to protect seniors, especially those suffering mental decline, from becoming victims of financial exploitation. NAIFA’s comment letter applauds NASAA for developing model legislation, “An Act to Protect Vulnerable Adults from Financial Exploitation,” and “supports the intent of the Model Act.” NAIFA also raised several concerns about the draft and offered suggested revisions.

NAIFA is also developing its own model for senior protection and has given the National Association of Insurance Commissioners feedback on its model senior protection legislation.

Some states also have enacted measures to protect seniors from becoming victims. In July 2015, your Board of Trustees approved a policy statement that recommends the NAIFA federation proactively support legislation with certain provisions.

Through NAIFA’s consumer campaign, we are proud to talk about our members’ adherence to a code of ethics, along with their professional knowledge, and dedication to securing their clients’ financial futures.

Insurance and financial advisors understand the importance of maintaining a good reputation. You build your business based on your body of work and the exceptional service you provide your clients. NAIFA is here to help. We are working every day to ensure your clients view your profession and your industry in the best possible light.