Financial Exploitation Prevention Act of 2023

The Financial Exploitation Prevention Act of 2023 requires investment companies and transfer agents to implement safeguards for "specified adults" (individuals aged 65+ or those with a mental/physical impairment that limits their ability to protect their own financial interests) who hold direct-at-fund accounts. It mandates collecting contact information for a trusted person to help verify account activity, and allows delaying redemption payments (for up to 25 business days total) if financial exploitation is suspected, after notifying the trusted contact and conducting an internal review. The law also requires detailed record-keeping, internal procedures for handling delays, and directs the SEC to submit a report to Congress within one year on further regulatory needs.