By Greg Wright
MBA, CFE, CFP®, CLU, ChFC
Certified Fraud Examiner
Certified Financial Planner™
About 20% of Seniors are victims of
financial fraud, and yet only 5% of the
victims report the abuse. The reasons
for the low reporting include humiliation,
feeling ashamed and being afraid.
According to Federal Trade
Commission, the number of complaints by people age 60 and over more than
doubled between 2010 and 2014. In the
face of these alarming statistics, regulators have suggested rules to help stem
the epidemic.
In 2008, new rules prohibited the use
a senior-specific professional designation that indicates or implies that the
insurance or stockbroker had special certification or training in advising or
servicing seniors. Excluded from the regulations were Certified
Financial Planners and six other designations[i],
in part, because of their training and professional organization oversight.
Unfortunately, this rule has not seen
enforcement, and I am unaware that anyone in violation of the rule has seen his license suspended,
revoked, or has been issued a “cease
& desist” order. I’ve asked both the Indiana insurance and securities regulators.
Along comes the latest attempt this
past September. This latest proposed Model Rule
has been designed to help protect vulnerable adults by requiring
supervisors of stockbrokers and investment advisors to report when they have a “reasonable belief that financial exploitation of an eligible adult (age 60 or older) has been attempted or has occurred.”
Good luck. Caveat emptor.
[i] Certified
Investment Management Analyst - CIMA
Accredited Retirement Plan Consultant - ARPC
Certified Medicaid Planner - CMP
Certified Retirement Counselor - CRC
Certified Retirement Financial Advisor - CRFA
Certified Senior Advisor – CSA
Has anyone heard when any money will be returned to the investors?
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