What This Bill Does
This bill creates a Senior Investor Taskforce within the Securities and Exchange Commission (a federal agency that regulates investment markets). The taskforce will study problems that older investors face, including financial fraud and mental decline. The bill also requires a separate government study on how much financial exploitation of senior citizens costs the economy.
Who It Affects
- Investors older than 65 years old
- The Securities and Exchange Commission and its staff
- Congress members and their committees
- State securities regulators and law enforcement
- Insurance regulators
- Federal agencies that work on elder protection
Key Provisions
- The taskforce director reports directly to the SEC chairman and will be chosen from people with experience helping senior investors (Sec. 2, subsection (3))
- The taskforce staff must include people from the SEC's Enforcement division, Compliance Inspections and Examinations office, and Investor Education and Advocacy office (Sec. 2, subsection (4))
- Members of the public can serve on the taskforce and will receive travel expense reimbursement (Sec. 2, subsection (4))
- The taskforce must submit a report every two years to Congress covering trends affecting senior investors, serious problems they face, and recommendations for new rules (Sec. 2, subsection (7))
- A government study must examine the financial costs of exploiting senior citizens and identify reporting gaps within two years (Sec. 3)
What Changes
If this law passes, the SEC will establish a new taskforce specifically focused on senior investors. This taskforce will identify problems older investors encounter and recommend changes to SEC rules. Congress will receive biennial reports detailing these problems and recommended solutions. Additionally, a government report will calculate the economic impact of senior financial exploitation within two years of the bill becoming law.
Important Definitions
- "Senior investor" means an investor older than 65 years old (Sec. 2, subsection (1))
- "Senior citizen" means an individual older than 65 years old (Sec. 3, subsection (a))
- "Appropriate committees of Congress" means three specific committees: the Senate Banking, Housing and Urban Affairs Committee; the Senate Special Committee on Aging; and the House Financial Services Committee (Sec. 2, subsection (1))
Effective Date
Not specified in bill text. However, the taskforce will end 10 years after the bill becomes law (Sec. 2, subsection (9)), and the government study must be completed within 2 years of enactment (Sec. 3, subsection (b)).
II
118TH CONGRESS
1ST SESSION
S. 955
To amend the Securities Exchange Act of 1934 to create an interdivisional
taskforce at the Securities and Exchange Commission for senior inves-
tors, and for other purposes.
IN THE SENATE OF THE UNITED STATES
MARCH 23, 2023
Ms. SINEMA (for herself and Ms. COLLINS) introduced the following bill; which
was read twice and referred to the Committee on Banking, Housing, and
Urban Affairs
A BILL
To amend the Securities Exchange Act of 1934 to create
an interdivisional taskforce at the Securities and Ex-
change Commission for senior investors, and for other
purposes.
Be it enacted by the Senate and House of Representa-
1
tives of the United States of America in Congress assembled,
2
SECTION 1. SHORT TITLE.
3
This Act may be cited as the ‘‘National Senior Inves-
4
tor Initiative Act of 2023’’ or the ‘‘Senior Security Act
5
of 2023’’.
6
VerDate Sep 11 2014
20:59 Apr 05, 2023
Jkt 039200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\S955.IS
S955
pbinns on DSKJLVW7X2PROD with $$_JOB
2
•S 955 IS
SEC. 2. SENIOR INVESTOR TASKFORCE.
1
Section 4 of the Securities Exchange Act of 1934 (15
2
U.S.C. 78d) is amended by adding at the end the fol-
3
lowing:
4
‘‘(l) SENIOR INVESTOR TASKFORCE.—
5
‘‘(1) DEFINITIONS.—In this subsection—
6
‘‘(A) the term ‘appropriate committees of
7
Congress’ means—
8
‘‘(i) the Committee on Banking,
9
Housing, and Urban Affairs of the Senate;
10
‘‘(ii) the Special Committee on Aging
11
of the Senate; and
12
‘‘(iii) the Committee on Financial
13
Services of the House of Representatives;
14
and
15
‘‘(B) the term ‘senior investor’ means an
16
investor who is older than 65 years of age.
17
‘‘(2) ESTABLISHMENT.—There is established
18
within
the
Commission
the
Senior
Investor
19
Taskforce (referred to in this subsection as the
20
‘Taskforce’).
21
‘‘(3) DIRECTOR
OF
THE
TASKFORCE.—The
22
head of the Taskforce shall be the Director, who
23
shall—
24
‘‘(A) report directly to the Chairman; and
25
VerDate Sep 11 2014
20:59 Apr 05, 2023
Jkt 039200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\S955.IS
S955
pbinns on DSKJLVW7X2PROD with $$_JOB
3
•S 955 IS
‘‘(B) be appointed by the Chairman, in
1
consultation with the Commission, from among
2
individuals—
3
‘‘(i) currently employed by the Com-
4
mission or from outside of the Commis-
5
sion; and
6
‘‘(ii) having experience in advocating
7
for the interests of senior investors.
8
‘‘(4) STAFFING.—
9
‘‘(A) IN GENERAL.—The Chairman shall
10
ensure that—
11
‘‘(i) the Taskforce is staffed suffi-
12
ciently to carry out fully the requirements
13
of this subsection; and
14
‘‘(ii) the staff described in clause (i)
15
includes individuals from the Division of
16
Enforcement, the Office of Compliance In-
17
spections and Examinations, and the Of-
18
fice of Investor Education and Advocacy.
19
‘‘(B) MEMBERS OF THE PUBLIC.—
20
‘‘(i) IN GENERAL.—A member of the
21
public may serve as a member of the
22
Taskforce.
23
‘‘(ii) TRAVEL EXPENSES.—The Chair-
24
man shall provide to any member of the
25
VerDate Sep 11 2014
20:59 Apr 05, 2023
Jkt 039200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\S955.IS
S955
pbinns on DSKJLVW7X2PROD with $$_JOB
4
•S 955 IS
public serving as a member of the
1
Taskforce travel expenses, including per
2
diem in lieu of subsistence, at rates au-
3
thorized for an employee of an agency
4
under subchapter I of chapter 57 of title 5,
5
United States Code, while away from the
6
home or regular place of business of the
7
member in the performance of the duties
8
of the Taskforce.
9
‘‘(C) FEDERAL
EMPLOYEES.—A member
10
of the Taskforce who is an employee of any
11
agency, office, or other establishment in the ex-
12
ecutive, legislative, or judicial branch of the
13
Federal Government shall receive no additional
14
compensation for performing the duties of the
15
member with respect to the Taskforce.
16
‘‘(5) MINIMIZING DUPLICATION OF EFFORTS.—
17
In organizing and staffing the Taskforce, the Chair-
18
man shall take such actions as may be necessary to
19
minimize the duplication of efforts within the divi-
20
sions and offices described in paragraph (4)(A)(ii)
21
and any other divisions, offices, or taskforces of the
22
Commission.
23
‘‘(6) FUNCTIONS
OF
THE
TASKFORCE.—The
24
Taskforce shall—
25
VerDate Sep 11 2014
20:59 Apr 05, 2023
Jkt 039200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\S955.IS
S955
pbinns on DSKJLVW7X2PROD with $$_JOB
5
•S 955 IS
‘‘(A) identify challenges that senior inves-
1
tors encounter, including problems associated
2
with financial exploitation and cognitive decline;
3
‘‘(B) identify areas in which senior inves-
4
tors would benefit from changes in the regula-
5
tions of the Commission or the rules of self-reg-
6
ulatory organizations;
7
‘‘(C) coordinate, as appropriate, with other
8
offices within the Commission, other taskforces
9
that may be established within the Commission,
10
self-regulatory organizations, and the Elder
11
Justice Coordinating Council; and
12
‘‘(D) consult, as appropriate, with State
13
securities and law enforcement authorities,
14
State insurance regulators, and other Federal
15
agencies.
16
‘‘(7) REPORT.—
17
‘‘(A) IN
GENERAL.—Subject to subpara-
18
graphs (B) and (C), the Taskforce, in coordina-
19
tion, as appropriate, with the Office of the In-
20
vestor Advocate and self-regulatory organiza-
21
tions, and in consultation, as appropriate, with
22
State securities and law enforcement authori-
23
ties, State insurance regulators, and Federal
24
agencies, shall submit to the Secretary of the
25
VerDate Sep 11 2014
20:59 Apr 05, 2023
Jkt 039200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\S955.IS
S955
pbinns on DSKJLVW7X2PROD with $$_JOB
6
•S 955 IS
Senate, the Clerk of the House of Representa-
1
tives, and the appropriate committees of Con-
2
gress a biennial report containing—
3
‘‘(i) appropriate statistical information
4
and full and substantive analysis;
5
‘‘(ii) a summary of recent trends and
6
innovations that have impacted the invest-
7
ment landscape for senior investors;
8
‘‘(iii) a summary of regulatory initia-
9
tives that have concentrated on senior in-
10
vestors and industry practices relating to
11
senior investors;
12
‘‘(iv) key observations, best practices,
13
and areas needing improvement involving
14
senior investors identified during examina-
15
tions, enforcement actions, and investor
16
education outreach;
17
‘‘(v) a summary of the most serious
18
issues encountered by senior investors, in-
19
cluding issues involving financial products
20
and services;
21
‘‘(vi) an analysis with respect to—
22
‘‘(I) existing policies and proce-
23
dures of brokers, dealers, investment
24
advisers, and other market partici-
25
VerDate Sep 11 2014
20:59 Apr 05, 2023
Jkt 039200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6201
E:\BILLS\S955.IS
S955
pbinns on DSKJLVW7X2PROD with $$_JOB
7
•S 955 IS
pants relating to senior investors and
1
topics involving senior investors; and
2
‘‘(II) whether the policies and
3
procedures described in subclause (I)
4
need to be further developed or re-
5
fined;
6
‘‘(vii) recommendations for any legis-
7
lative action, and any changes to the regu-
8
lations, guidance, and orders of the Com-
9
mission and self-regulatory organizations,
10
as may be appropriate to resolve problems
11
encountered by senior investors; and
12
‘‘(viii) any other information, as de-
13
termined appropriate by the Director of
14
the Taskforce.
15
‘‘(B) FIRST REPORT.—The first report re-
16
quired under this paragraph may not be sub-
17
mitted until after the Comptroller General of
18
the United States has submitted, and the
19
Taskforce has considered, the report required
20
under section 3 of the National Senior Investor
21
Initiative Act of 2023.
22
‘‘(C) ELECTRONIC
COPIES.—Each report
23
submitted under this paragraph to the Sec-
24
retary of the Senate and the Clerk of the House
25
VerDate Sep 11 2014
20:59 Apr 05, 2023
Jkt 039200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6201
E:\BILLS\S955.IS
S955
pbinns on DSKJLVW7X2PROD with $$_JOB
8
•S 955 IS
of Representatives shall include an electronic
1
version of the report, which any Member of
2
Congress may obtain, upon request to the appli-
3
cable official.
4
‘‘(8) USE OF EXISTING FUNDS.—The Commis-
5
sion shall carry out this subsection using amounts
6
otherwise made available to the Commission and no
7
additional funds are authorized to be appropriated
8
to carry out this subsection.
9
‘‘(9) SUNSET.—The Taskforce shall terminate
10
on the date that is 10 years after the date of enact-
11
ment of this subsection.’’.
12
SEC. 3. GAO STUDY.
13
(a) DEFINITIONS.—In this section—
14
(1) the term ‘‘senior citizen’’ means an indi-
15
vidual who is older than 65 years of age; and
16
(2) the term ‘‘Taskforce’’ means the Senior In-
17
vestor Taskforce established under subsection (l) of
18
section 4 of the Securities Exchange Act of 1934
19
(15 U.S.C. 78d), as added by section 2 of this Act.
20
(b) STUDY.—Not later than 2 years after the date
21
of enactment of this Act, the Comptroller General of the
22
United States shall submit to Congress and the Taskforce
23
the results of a study of financial exploitation of senior
24
citizens.
25
VerDate Sep 11 2014
20:59 Apr 05, 2023
Jkt 039200
PO 00000
Frm 00008
Fmt 6652
Sfmt 6201
E:\BILLS\S955.IS
S955
pbinns on DSKJLVW7X2PROD with $$_JOB
9
•S 955 IS
(c) CONTENTS.—The study required under sub-
1
section (b) shall include information with respect to—
2
(1) the economic costs of the financial exploi-
3
tation of senior citizens, including—
4
(A) costs associated with losses by victims
5
that were incurred as a result of the financial
6
exploitation of senior citizens;
7
(B) costs incurred by State and Federal
8
agencies, law enforcement and investigatory
9
agencies, public benefit programs, public health
10
programs, and other public programs as a re-
11
sult of the financial exploitation of senior citi-
12
zens;
13
(C) costs incurred by the private sector as
14
a result of the financial exploitation of senior
15
citizens; and
16
(D) any other relevant costs that—
17
(i) result from the financial exploi-
18
tation of senior citizens; and
19
(ii) the Comptroller General of the
20
United States determines are necessary
21
and appropriate to include in order to pro-
22
vide Congress and the public with a full
23
and accurate understanding of the eco-
24
nomic costs resulting from the financial ex-
25
VerDate Sep 11 2014
20:59 Apr 05, 2023
Jkt 039200
PO 00000
Frm 00009
Fmt 6652
Sfmt 6201
E:\BILLS\S955.IS
S955
pbinns on DSKJLVW7X2PROD with $$_JOB
10
•S 955 IS
ploitation of senior citizens in the United
1
States;
2
(2) the frequency of the financial exploitation of
3
senior citizens and correlated or contributing factors
4
with respect to that exploitation, including informa-
5
tion regarding—
6
(A) the percentage of senior citizens finan-
7
cially exploited each year; and
8
(B) factors that may contribute to an in-
9
creased risk of exploitation of senior citizens,
10
including race, social isolation, income, net
11
worth, religion, geographic location, occupation,
12
education, home-ownership, illness, and loss of
13
spouse; and
14
(3) policy responses to, and the reporting of,
15
the financial exploitation of senior citizens, includ-
16
ing—
17
(A) the degree to which financial exploi-
18
tation of senior citizens is not reported to the
19
appropriate authorities;
20
(B) the reasons that financial exploitation
21
of senior citizens may not be reported to the ap-
22
propriate authorities;
23
VerDate Sep 11 2014
20:59 Apr 05, 2023
Jkt 039200
PO 00000
Frm 00010
Fmt 6652
Sfmt 6201
E:\BILLS\S955.IS
S955
pbinns on DSKJLVW7X2PROD with $$_JOB
11
•S 955 IS
(C) to the extent that suspected financial
1
exploitation of senior citizens is reported, infor-
2
mation regarding—
3
(i) which entities receive those re-
4
ports, including—
5
(I) Federal, State, and local
6
agencies, including adult protective
7
services agencies and law enforcement
8
agencies; and
9
(II) private sector entities, pro-
10
fessional licensing boards, and other
11
regulators;
12
(ii) the specific types of information
13
the entities described in clause (i) collect;
14
(iii) the actions that the entities de-
15
scribed in clause (i) take upon the receipt
16
of such a report; and
17
(iv) any limits on the ability of the en-
18
tities described in clause (i) to prevent that
19
exploitation, such as jurisdictional limits, a
20
lack of expertise, resource challenges, or
21
limiting criteria with respect to the types
22
of victims the agencies are permitted to
23
serve;
24
VerDate Sep 11 2014
20:59 Apr 05, 2023
Jkt 039200
PO 00000
Frm 00011
Fmt 6652
Sfmt 6201
E:\BILLS\S955.IS
S955
pbinns on DSKJLVW7X2PROD with $$_JOB
12
•S 955 IS
(D) an analysis of gaps that may exist in
1
empowering Federal, State, and local agencies
2
to—
3
(i) prevent the financial exploitation
4
of senior citizens; or
5
(ii) respond effectively to the sus-
6
pected financial exploitation of senior citi-
7
zens; and
8
(E) an analysis of the legal hurdles that
9
prevent Federal, State, and local agencies from
10
effectively partnering with each other and pri-
11
vate professionals to effectively respond to the
12
financial exploitation of senior citizens.
13
Æ
VerDate Sep 11 2014
20:59 Apr 05, 2023
Jkt 039200
PO 00000
Frm 00012
Fmt 6652
Sfmt 6301
E:\BILLS\S955.IS
S955
pbinns on DSKJLVW7X2PROD with $$_JOB