PLANADVISER - September/October 2021 - 15

Elder Financial Abuse
What advisers can do to protect aging clients
OFTEN, financial advisers are the frontline
workers when it comes to preventing,
identifying and reporting elder financial
abuse or exploitation.
" Financial advisers can often see the
symptoms of abuse before anyone else,
and they can also help identify cognitive
decline, even before
says Ryan Bertrand, vice president and
managing director of advanced markets
at Transamerica. " While [clients] might
avoid certain situations in their everyday
lives, there are necessary conversations
they have with a financial adviser that can
expose cognitive impairment. "
Taking Action
Registered
investment
advisers
(RIAs)
who believe a client is being exploited or
scammed have an ethical obligation to act,
and are legally required to in most states.
Generally, action begins with a phone call
to their firm's compliance or legal department
for guidance on next steps, Bertrand
says. " Compliance departments usually
have a prescribed list of what should occur
when dealing with clients in this situation. "
Often, just a phone call or conversation
with the client, a family member whom
the adviser knows, or a trusted contact
can clear up the matter, he says. Failing
these, advisers may need to contact their
state's adult protective services program
or law enforcement.
Sometimes, advisers may need to
delay carrying out a client's request while
confirmation, or an investigation, occurs.
Based on the circumstances, the Financial
Industry Regulatory Authority (FINRA)
allows advisers to put a temporary hold
on a client's account if they believe the
person is being exploited.
" Time is the enemy of the thief, " says
Judith Kozlowski, a senior fellow at the
Women's Institute for a Secure Retirement
and an expert with the Department
of Justice Elder Initiative. " The longer
the financial institution can prolong the
actual money from leaving the account or
the securities from being transferred, the
better it is for the person being exploited. "
family members, "
Preventing Potential Problems
Advisers can also take steps to keep clients
from being victimized.
" Advisers should preplan for a crisis, "
says Liz Loewy, co-founder and chief operating
officer (COO) at EverSafe, a financial
wellness platform for seniors and
caregivers. " Cognitive issues can happen
almost overnight, and advisers need to be
looking at ways to be holistic and get in
front of these problems. "
Internally, that requires training
advisers on signs of financial exploitation
and the established procedure to follow if
they suspect it. Sources point out that, if
advisers have received the training from a
financial institution, they have immunity
under the Senior Safe Act when reporting
suspected financial abuse of clients.
In relationships with clients, prevention
begins with making sure all have at
least one " trusted contact " on file, experts
note. FINRA began requiring advisers to
obtain such information from clients
opening new accounts, starting in 2017.
Advisers should consider asking clients
who signed on before that to add one to
their file.
Further,
ships directly with contacts or with others
in clients' families, experts say. If an issue
arises, the adviser can call the contact to
discuss and resolve it as quickly as possible.
Alternatively, advisers may suggest that
family members receive read-only copies
of financial statements, letting them see
activity but not initiate transactions.
Advisers can educate their clients, and
themselves, on the dangers of elder financial
abuse, including common scams and
warning signs that they might be a victim,
sources say. Making sure clients have a
solid estate plan-and referring them to
an estate planning lawyer if not-can also
thwart scammers.
" Advisers should be diligent about
guiding their clients to get their documents,
wills and powers of attorney in
order, " Kozlowski says. " Even if it's just
going through a checklist in their annual
meetings. -Beth Braverman
ON THE MOVE
➜ TIAA selected
Dave Dowrich as
chief financial officer.
He will be responsible
for the Fortune 100
company's financial
planning, general
account, management
and reporting, plus
its actuarial, tax and
accounting operations
and strategies.
➜ Aegon Asset
Management appointed
Nicole GrootveldSandig
as its chief
technology officer.
She will be responsible
for defining and
executing its enterprise
architecture plans and
strategic road maps.
it can help to build relation➜
John Tyers joined
Wells Fargo & Co. as
head of the independent
adviser group at Wells
Fargo Advisors. He
reports to Jim Hays, head
of the adviser division.
➜ Broadridge Financial
Solutions hired Toby
Cromwell as director,
CIT [collective investment
trust] funds product
management. His
responsibilities include
product development,
management, and
governance and business
management for all
stable value and other
CIT products in the U.S.
planadviser.com September-October 2021 | 15
➜
http://www.planadviser.com
PLANADVISER - September/October 2021

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