Financial Exploitation Prevention Act of 2023

This bill requires investment companies and their transfer agents to implement safeguards for "specified adults" (individuals aged 65+ or with mental/physical impairments that limit their ability to protect their interests). It mandates that these firms request and retain contact information for a trusted person when a customer holds a direct-at-fund account, and allows them to postpone redemptions for up to 15 business days (extendable by 10 days) if they reasonably suspect financial exploitation during a redemption request. Firms must document all delays, notify designated contacts within 2 days of an extension, and hold funds in a demand deposit account during the delay. The law also requires firms to establish internal procedures for handling such cases and include redemption delay notices in prospectuses.