Banking Commerce and Insurance

Financial protections for seniors, vulnerable adults advanced

A bill that would allow certain financial professionals to delay suspicious transactions advanced from general file March 2.

Sen. Brett Lindstrom
Sen. Brett Lindstrom

LB297, introduced by Sen. Brett Lindstrom of Omaha, would allow broker-dealers and investment advisers to hold transactions for up to 30 business days in suspected cases of exploitation of seniors and vulnerable adults.

Under the bill, broker-dealers and investment advisers would be required to notify the Adult Protective Services Division of the Nebraska Department of Health and Human Services and the state Department of Banking and Finance within two business days in order to delay a transaction and conduct an internal review.

Lindstrom said the bill would expand upon legislation passed in 2020 that enabled financial institutions to pause suspect transactions.

“There are some subtle changes from last year’s legislation, but I believe they strengthen the act to provide protections [against] the exploitation of vulnerable adults and senior citizens living in the state of Nebraska,” Lindstrom said.

Sen. Mike Groene of North Platte said he supported the bill because it would give financial advisers the ability to protect vulnerable clients.

“I had a bank loan officer one time, darn near in tears, telling me a story about one of his clients as he watched $300,000 empty from his account but couldn’t do anything about it,” Groene said.

Lawmakers adopted a technical amendment 40-0 before advancing LB297 to select file on a 38-0 vote.

Bookmark and Share