Both sides have signed this (Bill Ranking)
H.R. 2478 · 119th Congress (2025-2026)
12 members · Left 1 · Center 5 · Right 6 (Bill Ranking)
| Sponsor | Rep. Wagner, Ann (R-MO) (Introduced 03/27/2025) |
|---|---|
| Sponsor Voting Record | Lean right · DW-NOMINATE +0.39 · measured from every roll-call vote this member has cast (voteview.com) (Sponsor Ranking) |
| Support |
LLLCLRR support across the spectrum: 12 members signed on (Bill Ranking) this bill: sponsor + current cosponsors, each once |
| Committees | Senate - Banking, Housing, and Urban Affairs Committee; House - Financial Services Committee; House - Financial Services Committee; House - Financial Services Committee |
| Latest Action | 07/13/2026 Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs. |
| Roll Call Votes | 1 |
| Source | view on congress.gov → |
Introduced in House (03/27/2025)
Financial Exploitation Prevention Act of 2025
This bill establishes procedures for delaying the redemption of certain securities if an investment company or agent believes that an older individual or an individual with certain impairments has been financially exploited.
Specifically, the bill allows for the delay of the redemption of a security issued by an open-end investment management company and serviced by a transfer agent if the company or agent reasonably believes the redemption involves the financial exploitation of an individual (1) age 65 or older, or (2) age 18 or older who is unable to protect his or her own interests due to a mental or physical impairment. (Open-end investment management companies offer securities in pooled investment vehicles such as mutual funds. Transfer agents facilitate certain transactions for corporations and investment companies, including dividend distribution and change of securities ownership.)
The company may initially delay the redemption for up to 15 days and, upon making a determination of exploitation, may delay the redemption an additional 10 days. A state regulator, appropriate administrative agency, or court may extend this period. In the event of delay, the company must hold the amounts related to the redemption in a demand deposit account. The bill also establishes notification requirements.
The bill requires the registered open-end investment company and transfer agent to notify the Securities and Exchange Commission (SEC) if they elect to comply with the procedures established under this bill.
Additionally, the SEC must make recommendations to address the financial exploitation of these adults.
119 HR 2478 EH: Financial Exploitation Prevention Act of 2025 U.S. House of Representatives text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. IB 119th CONGRESS2d Session H. R. 2478
IN THE HOUSE OF REPRESENTATIVES AN ACT To amend the Investment Company Act of 1940 to postpone the date of payment or satisfaction upon redemption of certain securities in the case of the financial exploitation of specified adults, and for other purposes.
1.Short titleThis Act may be cited as the Financial Exploitation Prevention Act of 2025.
2.Redemption of certain securities postponed (a)In generalSection 22 of the Investment Company Act of 1940 (15 U.S.C. 80a–22) is amended by adding at the end the following: (h)Requirements with respect to non-institutional direct at-fund accounts (1)Election (A)In generalA registered open-end investment company and a transfer agent described under paragraph (2) may elect to comply with the requirements under paragraph (2) and subsection (i) by notifying the Commission of such election. (B)Effect of electionParagraph (2) and subsection (i) shall only apply to a registered open-end investment company and a transfer agent that have made the election under subparagraph (A). (2)RequirementsIn the case of a customer who is a holder of a non-institutional account held directly with a registered open-end investment company and serviced by a transfer agent (a direct-at-fund account), the company and transfer agent shall— (A)request from such customer the name and contact information of at least one individual who— (i)is at the time of such request an adult; and (ii)may be contacted with respect to such account; (B)document and retain the information received pursuant to subparagraph (A); and (C)disclose to such customer in writing (including through electronic delivery) that such company or transfer agent may contact an individual specified pursuant to subparagraph (A) with respect to the account of such customer to— (i)address possible financial exploitation of such customer; (ii)confirm the contact information or health status of the customer; or (iii)identify any legal guardian, executor, trustee, or holder of a power of attorney of the customer. (i)Redemption of certain securities postponed (1)In generalNotwithstanding subsection (e), a registered open-end investment company or a transfer agent acting on behalf of such company may postpone the date of payment or satisfaction upon redemption of any redeemable security in accordance with its terms for more than seven days after the tender of such security to such company or its agent designated for that purpose for redemption if such company or agent reasonably believes that— (A)the redemption is requested by a security holder who is a specified adult; and (B)financial exploitation has occurred, is occurring, or has been attempted with respect to such redemption. (2)Duration (A)In generalExcept as provided in subparagraphs (B) and (C), a registered open-end investment company or a transfer agent acting on behalf of such company may postpone the date of payment or satisfaction upon redemption of a redeemable security under paragraph (1) for a period of not more than 15 business days. (B)Extension upon determination of exploitationThe period described in subparagraph (A) may be extended by an additional 10 business days if the registered open-end investment company or a transfer agent acting on behalf of such company— (i)reasonably believes that— (I)the redemption is requested by a security holder who is a specified adult; and (II)financial exploitation has occurred, is occurring, or has been attempted with respect to such redemption; (ii)subject to subparagraph (D), not later than 2 days after making a determination under clause (i), notifies the individuals specified by such security holder under subsection (h)(2)(A) in writing (including through electronic delivery) of the extension of the period described in subparagraph (A) under this subparagraph and the reason for such extension; (iii)initiates an internal review of the facts and circumstances relating to the determination under clause (i); (iv)holds amounts related to the delayed payment or satisfaction upon redemption of the redeemable security in a demand deposit account; and (v)documents and retains records related to carrying out clause (iv) and includes such records in the first required account statement of the security holder provided after the date on which the determination is made under clause (i). (C)Extension by governmentA State regulator, administrative agency of competent jurisdiction, or court of competent jurisdiction may extend the period described in subparagraph (A). (D)Notification (i)ExceptionSubparagraph (B)(ii) shall not apply if a registered open-end investment company or transfer agent acting on behalf of such company reasonably believes that an individual required to be notified under such subparagraph is, has been, or will subject the security holder who identified such individual under subsection (h)(2)(A) to financial exploitation. (ii)Reasonable effortsAn open-end investment company or transfer agent acting on behalf of such company shall be considered in compliance with subparagraph (B)(ii) if such company or transfer agent makes a reasonable effort to contact the individuals specified by a security holder under subsection (h)(2)(A). (E)Internal proceduresAn open-end investment company or transfer agent acting on behalf of such company shall establish procedures to carry out the requirements under this subsection, including procedures— (i)related to the identification and reporting of matters related to the financial exploitation of specified adults; (ii)to determine whether to release or reinvest delayed redemption proceeds, taking into account the facts and circumstances of each case, should the internal review under subparagraph (B)(iii) support the reasonable belief described in subparagraph (B)(i); (iii)identifying each employee of the company or transfer agent with authority to establish, extend, or terminate a period described in paragraph (1) or subparagraph (A); (iv)in the case of a transfer agent, that are reasonably designed to ensure that the employees of such transfer agent comply with this subsection; and (v)in the case of an open-end investment company, establishing periodic reporting requirements under which a transfer agent acting on behalf of such company shall notify such company of— (I)each extension under subparagraph (B) authorized by such transfer agent; (II)each finding by the transfer agent under subparagraph (B)(i); (III)each notification under subparagraph (B)(ii) carried out by such transfer agent; and (IV)the results of each internal review initiated by the transfer agent under subparagraph (B)(iii). (F)Information included in certain statementsAn open-end investment company shall include in each prospectus or statement of additional information a notification that the company or transfer agent acting on behalf of such company may postpone redemption of certain securities under this subsection. (G)Record retentionAn open-end investment company or transfer agent acting on behalf of such company shall— (i)document and retain records of— (I)each postponement of redemption under subparagraph (A), (B), or (C); (II)each finding under subparagraph (B)(i); (III)the name and position of each employee described in subparagraph (E)(iii); (IV)each notification carried out under subparagraph (B)(ii); and (V)the results of each internal review initiated under subparagraph (B)(iii); and (ii)make such records available to the Commission at the request of the Commission. (3)Specified adult definedIn this subsection, the term specified adult means— (A)an individual age 65 or older; or (B)an individual age 18 or older who a registered open-end investment company or a transfer agent acting on behalf of such company reasonably believes has a mental or physical impairment that renders the individual unable to protect the individual’s own interests.. (b)Regulatory and legislative recommendations (1)In generalNot later than 1 year after the date of the enactment of this section, the Securities and Exchange Commission, in consultation with the entities specified in paragraph (2), shall submit to Congress a report that includes recommendations regarding the regulatory and legislative changes necessary to address the financial exploitation of security holders who are specified adults (as defined in subsection (i)(3) of section 22 of the Investment Company Act of 1940 (15 U.S.C. 80a–22), as added by this section). (2)ConsultationThe entities specified in this paragraph are as follows: (A)The Commodity Futures Trading Commission. (B)The Director of the Bureau of Consumer Financial Protection. (C)The Financial Industry Regulatory Authority. (D)The North American Securities Administrators Association. (E)The Board of Governors of the Federal Reserve System. (F)The Comptroller of the Currency. (G)The Federal Deposit Insurance Corporation. Passed the House of Representatives June 25, 2026.Kevin F. McCumber,Clerk.
119 HR 2478 IH: Financial Exploitation Prevention Act of 2025 U.S. House of Representatives 2025-03-27 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. I119th CONGRESS1st SessionH. R. 2478IN THE HOUSE OF REPRESENTATIVESMarch 27, 2025Mrs. Wagner (for herself, Mr. Gottheimer, Mr. Garbarino, Mr. Steil, Mrs. Kim, Ms. Perez, and Mr. Lawler) introduced the following bill; which was referred to the Committee on Financial ServicesA BILLTo amend the Investment Company Act of 1940 to postpone the date of payment or satisfaction upon redemption of certain securities in the case of the financial exploitation of specified adults, and for other purposes.1.Short titleThis Act may be cited as the Financial Exploitation Prevention Act of 2025.2.Redemption of certain securities postponed(a)In generalSection 22 of the Investment Company Act of 1940 (15 U.S.C. 80a–22) is amended by adding at the end the following:(h)Requirements with respect to non-Institutional direct at-Fund accounts(1)Election(A)In generalA registered open-end investment company and a transfer agent described under paragraph (2) may elect to comply with the requirements under paragraph (2) and subsection (i) by notifying the Commission of such election.(B)Effect of electionParagraph (2) and subsection (i) shall only apply to a registered open-end investment company and a transfer agent that have made the election under subparagraph (A).(2)RequirementsIn the case of a customer who is a holder of a non-institutional account held directly with a registered open-end investment company and serviced by a transfer agent (a direct-at-fund account), the company and transfer agent shall—(A)request from such customer the name and contact information of at least one individual who—(i)is at the time of such request an adult; and(ii)may be contacted with respect to such account;(B)document and retain the information received pursuant to subparagraph (A); and(C)disclose to such customer in writing (including through electronic delivery) that such company or transfer agent may contact an individual specified pursuant to subparagraph (A) with respect to the account of such customer to—(i)address possible financial exploitation of such customer;(ii)confirm the contact information or health status of the customer; or(iii)identify any legal guardian, executor, trustee, or holder of a power of attorney of the customer.(i)Redemption of certain securities postponed(1)In generalNotwithstanding subsection (e), a registered open-end investment company or a transfer agent acting on behalf of such company may postpone the date of payment or satisfaction upon redemption of any redeemable security in accordance with its terms for more than seven days after the tender of such security to such company or its agent designated for that purpose for redemption if such company or agent reasonably believes that—(A)the redemption is requested by a security holder who is a specified adult; and(B)financial exploitation has occurred, is occurring, or has been attempted with respect to such redemption.(2)Duration(A)In generalExcept as provided in subparagraphs (B) and (C), a registered open-end investment company or a transfer agent acting on behalf of such company may postpone the date of payment or satisfaction upon redemption of a redeemable security under paragraph (1) for a period of not more than 15 business days.(B)Extension upon determination of exploitationThe period described in subparagraph (A) may be extended by an additional 10 business days if the registered open-end investment company or a transfer agent acting on behalf of such company—(i)reasonably believes that—(I)the redemption is requested by a security holder who is a specified adult; and(II)financial exploitation has occurred, is occurring, or has been attempted with respect to such redemption;(ii)subject to subparagraph (D), not later than 2 days after making a determination under clause (i), notifies the individuals specified by such security holder under subsection (h)(2)(A) in writing (including through electronic delivery) of the extension of the period described in subparagraph (A) under this subparagraph and the reason for such extension;(iii)initiates an internal review of the facts and circumstances relating to the determination under clause (i);(iv)holds amounts related to the delayed payment or satisfaction upon redemption of the redeemable security in a demand deposit account; and(v)documents and retains records related to carrying out clause (iv) and includes such records in the first required account statement of the security holder provided after the date on which the determination is made under clause (i). (C)Extension by governmentA State regulator, administrative agency of competent jurisdiction, or court of competent jurisdiction may extend the period described in subparagraph (A).(D)Notification(i)ExceptionSubparagraph (B)(ii) shall not apply if a registered open-end investment company or transfer agent acting on behalf of such company reasonably believes that an individual required to be notified under such subparagraph is, has been, or will subject the security holder who identified such individual under subsection (h)(2)(A) to financial exploitation.(ii)Reasonable effortsAn open-end investment company or transfer agent acting on behalf of such company shall be considered in compliance with subparagraph (B)(ii) if such company or transfer agent makes a reasonable effort to contact the individuals specified by a security holder under subsection (h)(2)(A).(E)Internal proceduresAn open-end investment company or transfer agent acting on behalf of such company shall establish procedures to carry out the requirements under this subsection, including procedures—(i)related to the identification and reporting of matters related to the financial exploitation of specified adults;(ii)to determine whether to release or reinvest delayed redemption proceeds, taking into account the facts and circumstances of each case, should the internal review under subparagraph (B)(iii) support the reasonable belief described in subparagraph (B)(i); (iii)identifying each employee of the company or transfer agent with authority to establish, extend, or terminate a period described in paragraph (1) or subparagraph (A);(iv)in the case of a transfer agent, that are reasonably designed to ensure that the employees of such transfer agent comply with this subsection; and(v)in the case of an open-end investment company, establishing periodic reporting requirements under which a transfer agent acting on behalf of such company shall notify such company of—(I)each extension under subparagraph (B) authorized by such transfer agent;(II)each finding by the transfer agent under subparagraph (B)(i);(III)each notification under subparagraph (B)(ii) carried out by such transfer agent; and(IV)the results of each internal review initiated by the transfer agent under subparagraph (B)(iii). (F)Information included in certain statementsAn open-end investment company shall include in each prospectus or statement of additional information a notification that the company or transfer agent acting on behalf of such company may postpone redemption of certain securities under this subsection. (G)Record retentionAn open-end investment company or transfer agent acting on behalf of such company shall—(i)document and retain records of—(I)each postponement of redemption under subparagraph (A), (B), and (C);(II)each finding under subparagraph (B)(i);(III)the name and position of each employee described in subparagraph (E)(iii);(IV)each notification carried out under subparagraph (B)(ii); and(V)the results of each internal review initiated under subparagraph (B)(iii); and(ii)make such records available to the Commission at the request of the Commission.(3)Specified adult definedIn this subsection, the term specified adult means—(A)an individual age 65 or older; or(B)an individual age 18 or older who a registered open-end investment company or a transfer agent acting on behalf of such company reasonably believes has a mental or physical impairment that renders the individual unable to protect the individual’s own interests..(b)Recommendations(1)In generalNot later than 1 year after the date of the enactment of this section, the Securities and Exchange Commission, in consultation with the entities specified in paragraph (2), shall submit to Congress a report that includes recommendations regarding the regulatory and legislative changes necessary to address the financial exploitation of security holders who are specified adults (as defined in subsection (i)(3) of section 22 of the Investment Company Act of 1940 (15 U.S.C. 80a–22), as added by this section).(2)ConsultationThe entities specified in this paragraph are as follows:(A)The Commodity Futures Trading Commission.(B)The Director of the Bureau of Consumer Financial Protection.(C)The Financial Industry Regulatory Authority.(D)The North American Securities Administrators Association.(E)The Board of Governors of the Federal Reserve System.(F)The Comptroller of the Currency.(G)The Federal Deposit Insurance Corporation.
119 HR 2478 : Financial Exploitation Prevention Act of 2025 U.S. House of Representatives 2026-07-13 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. IIB119th CONGRESS2d SessionH. R. 2478IN THE SENATE OF THE UNITED STATESJuly 13, 2026Received; read twice and referred to the Committee on Banking, Housing, and Urban AffairsAN ACTTo amend the Investment Company Act of 1940 to postpone the date of payment or satisfaction upon redemption of certain securities in the case of the financial exploitation of specified adults, and for other purposes.1.Short titleThis Act may be cited as the Financial Exploitation Prevention Act of 2025.2.Redemption of certain securities postponed(a)In generalSection 22 of the Investment Company Act of 1940 (15 U.S.C. 80a–22) is amended by adding at the end the following:(h)Requirements with respect to non-institutional direct at-fund accounts(1)Election(A)In generalA registered open-end investment company and a transfer agent described under paragraph (2) may elect to comply with the requirements under paragraph (2) and subsection (i) by notifying the Commission of such election.(B)Effect of electionParagraph (2) and subsection (i) shall only apply to a registered open-end investment company and a transfer agent that have made the election under subparagraph (A).(2)RequirementsIn the case of a customer who is a holder of a non-institutional account held directly with a registered open-end investment company and serviced by a transfer agent (a direct-at-fund account), the company and transfer agent shall—(A)request from such customer the name and contact information of at least one individual who—(i)is at the time of such request an adult; and(ii)may be contacted with respect to such account;(B)document and retain the information received pursuant to subparagraph (A); and(C)disclose to such customer in writing (including through electronic delivery) that such company or transfer agent may contact an individual specified pursuant to subparagraph (A) with respect to the account of such customer to—(i)address possible financial exploitation of such customer;(ii)confirm the contact information or health status of the customer; or(iii)identify any legal guardian, executor, trustee, or holder of a power of attorney of the customer.(i)Redemption of certain securities postponed(1)In generalNotwithstanding subsection (e), a registered open-end investment company or a transfer agent acting on behalf of such company may postpone the date of payment or satisfaction upon redemption of any redeemable security in accordance with its terms for more than seven days after the tender of such security to such company or its agent designated for that purpose for redemption if such company or agent reasonably believes that—(A)the redemption is requested by a security holder who is a specified adult; and(B)financial exploitation has occurred, is occurring, or has been attempted with respect to such redemption.(2)Duration(A)In generalExcept as provided in subparagraphs (B) and (C), a registered open-end investment company or a transfer agent acting on behalf of such company may postpone the date of payment or satisfaction upon redemption of a redeemable security under paragraph (1) for a period of not more than 15 business days.(B)Extension upon determination of exploitationThe period described in subparagraph (A) may be extended by an additional 10 business days if the registered open-end investment company or a transfer agent acting on behalf of such company—(i)reasonably believes that—(I)the redemption is requested by a security holder who is a specified adult; and(II)financial exploitation has occurred, is occurring, or has been attempted with respect to such redemption;(ii)subject to subparagraph (D), not later than 2 days after making a determination under clause (i), notifies the individuals specified by such security holder under subsection (h)(2)(A) in writing (including through electronic delivery) of the extension of the period described in subparagraph (A) under this subparagraph and the reason for such extension;(iii)initiates an internal review of the facts and circumstances relating to the determination under clause (i);(iv)holds amounts related to the delayed payment or satisfaction upon redemption of the redeemable security in a demand deposit account; and(v)documents and retains records related to carrying out clause (iv) and includes such records in the first required account statement of the security holder provided after the date on which the determination is made under clause (i). (C)Extension by governmentA State regulator, administrative agency of competent jurisdiction, or court of competent jurisdiction may extend the period described in subparagraph (A).(D)Notification(i)ExceptionSubparagraph (B)(ii) shall not apply if a registered open-end investment company or transfer agent acting on behalf of such company reasonably believes that an individual required to be notified under such subparagraph is, has been, or will subject the security holder who identified such individual under subsection (h)(2)(A) to financial exploitation.(ii)Reasonable effortsAn open-end investment company or transfer agent acting on behalf of such company shall be considered in compliance with subparagraph (B)(ii) if such company or transfer agent makes a reasonable effort to contact the individuals specified by a security holder under subsection (h)(2)(A).(E)Internal proceduresAn open-end investment company or transfer agent acting on behalf of such company shall establish procedures to carry out the requirements under this subsection, including procedures—(i)related to the identification and reporting of matters related to the financial exploitation of specified adults;(ii)to determine whether to release or reinvest delayed redemption proceeds, taking into account the facts and circumstances of each case, should the internal review under subparagraph (B)(iii) support the reasonable belief described in subparagraph (B)(i); (iii)identifying each employee of the company or transfer agent with authority to establish, extend, or terminate a period described in paragraph (1) or subparagraph (A);(iv)in the case of a transfer agent, that are reasonably designed to ensure that the employees of such transfer agent comply with this subsection; and(v)in the case of an open-end investment company, establishing periodic reporting requirements under which a transfer agent acting on behalf of such company shall notify such company of—(I)each extension under subparagraph (B) authorized by such transfer agent;(II)each finding by the transfer agent under subparagraph (B)(i);(III)each notification under subparagraph (B)(ii) carried out by such transfer agent; and(IV)the results of each internal review initiated by the transfer agent under subparagraph (B)(iii). (F)Information included in certain statementsAn open-end investment company shall include in each prospectus or statement of additional information a notification that the company or transfer agent acting on behalf of such company may postpone redemption of certain securities under this subsection. (G)Record retentionAn open-end investment company or transfer agent acting on behalf of such company shall—(i)document and retain records of—(I)each postponement of redemption under subparagraph (A), (B), or (C);(II)each finding under subparagraph (B)(i);(III)the name and position of each employee described in subparagraph (E)(iii);(IV)each notification carried out under subparagraph (B)(ii); and(V)the results of each internal review initiated under subparagraph (B)(iii); and(ii)make such records available to the Commission at the request of the Commission.(3)Specified adult definedIn this subsection, the term specified adult means—(A)an individual age 65 or older; or(B)an individual age 18 or older who a registered open-end investment company or a transfer agent acting on behalf of such company reasonably believes has a mental or physical impairment that renders the individual unable to protect the individual’s own interests..(b)Regulatory and legislative recommendations(1)In generalNot later than 1 year after the date of the enactment of this section, the Securities and Exchange Commission, in consultation with the entities specified in paragraph (2), shall submit to Congress a report that includes recommendations regarding the regulatory and legislative changes necessary to address the financial exploitation of security holders who are specified adults (as defined in subsection (i)(3) of section 22 of the Investment Company Act of 1940 (15 U.S.C. 80a–22), as added by this section).(2)ConsultationThe entities specified in this paragraph are as follows:(A)The Commodity Futures Trading Commission.(B)The Director of the Bureau of Consumer Financial Protection.(C)The Financial Industry Regulatory Authority.(D)The North American Securities Administrators Association.(E)The Board of Governors of the Federal Reserve System.(F)The Comptroller of the Currency.(G)The Federal Deposit Insurance Corporation.Passed the House of Representatives June 25, 2026.Kevin F. McCumber,Clerk.
119 HR 2478 RH: Financial Exploitation Prevention Act of 2025 U.S. House of Representatives 2025-11-04 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. IBUnion Calendar No. 313119th CONGRESS1st SessionH. R. 2478[Report No. 119–361]IN THE HOUSE OF REPRESENTATIVESMarch 27, 2025Mrs. Wagner (for herself, Mr. Gottheimer, Mr. Garbarino, Mr. Steil, Mrs. Kim, Ms. Perez, and Mr. Lawler) introduced the following bill; which was referred to the Committee on Financial ServicesNovember 4, 2025Additional sponsors: Mr. Huizenga, Mr. Vindman, Mr. Fields, Mr. Sessions, and Mr. Nunn of IowaNovember 4, 2025Reported with an amendment, committed to the Committee of the Whole House on the State of the Union, and ordered to be printedStrike out all after the enacting clause and insert the part printed in italicFor text of introduced bill, see copy of bill as introduced on March 27, 2025A BILLTo amend the Investment Company Act of 1940 to postpone the date of payment or satisfaction upon redemption of certain securities in the case of the financial exploitation of specified adults, and for other purposes.1.Short titleThis Act may be cited as the Financial Exploitation Prevention Act of 2025.2.Redemption of certain securities postponed(a)In generalSection 22 of the Investment Company Act of 1940 (15 U.S.C. 80a–22) is amended by adding at the end the following:(h)Requirements with respect to non-institutional direct at-fund accounts(1)Election(A)In generalA registered open-end investment company and a transfer agent described under paragraph (2) may elect to comply with the requirements under paragraph (2) and subsection (i) by notifying the Commission of such election.(B)Effect of electionParagraph (2) and subsection (i) shall only apply to a registered open-end investment company and a transfer agent that have made the election under subparagraph (A).(2)RequirementsIn the case of a customer who is a holder of a non-institutional account held directly with a registered open-end investment company and serviced by a transfer agent (a direct-at-fund account), the company and transfer agent shall—(A)request from such customer the name and contact information of at least one individual who—(i)is at the time of such request an adult; and(ii)may be contacted with respect to such account;(B)document and retain the information received pursuant to subparagraph (A); and(C)disclose to such customer in writing (including through electronic delivery) that such company or transfer agent may contact an individual specified pursuant to subparagraph (A) with respect to the account of such customer to—(i)address possible financial exploitation of such customer;(ii)confirm the contact information or health status of the customer; or(iii)identify any legal guardian, executor, trustee, or holder of a power of attorney of the customer.(i)Redemption of certain securities postponed(1)In generalNotwithstanding subsection (e), a registered open-end investment company or a transfer agent acting on behalf of such company may postpone the date of payment or satisfaction upon redemption of any redeemable security in accordance with its terms for more than seven days after the tender of such security to such company or its agent designated for that purpose for redemption if such company or agent reasonably believes that—(A)the redemption is requested by a security holder who is a specified adult; and(B)financial exploitation has occurred, is occurring, or has been attempted with respect to such redemption.(2)Duration(A)In generalExcept as provided in subparagraphs (B) and (C), a registered open-end investment company or a transfer agent acting on behalf of such company may postpone the date of payment or satisfaction upon redemption of a redeemable security under paragraph (1) for a period of not more than 15 business days.(B)Extension upon determination of exploitationThe period described in subparagraph (A) may be extended by an additional 10 business days if the registered open-end investment company or a transfer agent acting on behalf of such company—(i)reasonably believes that—(I)the redemption is requested by a security holder who is a specified adult; and(II)financial exploitation has occurred, is occurring, or has been attempted with respect to such redemption;(ii)subject to subparagraph (D), not later than 2 days after making a determination under clause (i), notifies the individuals specified by such security holder under subsection (h)(2)(A) in writing (including through electronic delivery) of the extension of the period described in subparagraph (A) under this subparagraph and the reason for such extension;(iii)initiates an internal review of the facts and circumstances relating to the determination under clause (i);(iv)holds amounts related to the delayed payment or satisfaction upon redemption of the redeemable security in a demand deposit account; and(v)documents and retains records related to carrying out clause (iv) and includes such records in the first required account statement of the security holder provided after the date on which the determination is made under clause (i). (C)Extension by governmentA State regulator, administrative agency of competent jurisdiction, or court of competent jurisdiction may extend the period described in subparagraph (A).(D)Notification(i)ExceptionSubparagraph (B)(ii) shall not apply if a registered open-end investment company or transfer agent acting on behalf of such company reasonably believes that an individual required to be notified under such subparagraph is, has been, or will subject the security holder who identified such individual under subsection (h)(2)(A) to financial exploitation.(ii)Reasonable effortsAn open-end investment company or transfer agent acting on behalf of such company shall be considered in compliance with subparagraph (B)(ii) if such company or transfer agent makes a reasonable effort to contact the individuals specified by a security holder under subsection (h)(2)(A).(E)Internal proceduresAn open-end investment company or transfer agent acting on behalf of such company shall establish procedures to carry out the requirements under this subsection, including procedures—(i)related to the identification and reporting of matters related to the financial exploitation of specified adults;(ii)to determine whether to release or reinvest delayed redemption proceeds, taking into account the facts and circumstances of each case, should the internal review under subparagraph (B)(iii) support the reasonable belief described in subparagraph (B)(i); (iii)identifying each employee of the company or transfer agent with authority to establish, extend, or terminate a period described in paragraph (1) or subparagraph (A);(iv)in the case of a transfer agent, that are reasonably designed to ensure that the employees of such transfer agent comply with this subsection; and(v)in the case of an open-end investment company, establishing periodic reporting requirements under which a transfer agent acting on behalf of such company shall notify such company of—(I)each extension under subparagraph (B) authorized by such transfer agent;(II)each finding by the transfer agent under subparagraph (B)(i);(III)each notification under subparagraph (B)(ii) carried out by such transfer agent; and(IV)the results of each internal review initiated by the transfer agent under subparagraph (B)(iii). (F)Information included in certain statementsAn open-end investment company shall include in each prospectus or statement of additional information a notification that the company or transfer agent acting on behalf of such company may postpone redemption of certain securities under this subsection. (G)Record retentionAn open-end investment company or transfer agent acting on behalf of such company shall—(i)document and retain records of—(I)each postponement of redemption under subparagraph (A), (B), or (C);(II)each finding under subparagraph (B)(i);(III)the name and position of each employee described in subparagraph (E)(iii);(IV)each notification carried out under subparagraph (B)(ii); and(V)the results of each internal review initiated under subparagraph (B)(iii); and(ii)make such records available to the Commission at the request of the Commission.(3)Specified adult definedIn this subsection, the term specified adult means—(A)an individual age 65 or older; or(B)an individual age 18 or older who a registered open-end investment company or a transfer agent acting on behalf of such company reasonably believes has a mental or physical impairment that renders the individual unable to protect the individual’s own interests..(b)Regulatory and legislative recommendations(1)In generalNot later than 1 year after the date of the enactment of this section, the Securities and Exchange Commission, in consultation with the entities specified in paragraph (2), shall submit to Congress a report that includes recommendations regarding the regulatory and legislative changes necessary to address the financial exploitation of security holders who are specified adults (as defined in subsection (i)(3) of section 22 of the Investment Company Act of 1940 (15 U.S.C. 80a–22), as added by this section).(2)ConsultationThe entities specified in this paragraph are as follows:(A)The Commodity Futures Trading Commission.(B)The Director of the Bureau of Consumer Financial Protection.(C)The Financial Industry Regulatory Authority.(D)The North American Securities Administrators Association.(E)The Board of Governors of the Federal Reserve System.(F)The Comptroller of the Currency.(G)The Federal Deposit Insurance Corporation.November 4, 2025Reported with an amendment, committed to the Committee of the Whole House on the State of the Union, and ordered to be printed
The bill's own words, from our database (synced from the GPO BILLS XML); paragraph breaks added at the bill's section boundaries, nothing else changed.
| Date | Chamber | All Actions |
|---|---|---|
| 03/27/2025 | Library of Congress | Introduced in House |
| 03/27/2025 | Library of Congress | Introduced in House |
| 03/27/2025 | House floor actions | Referred to the House Committee on Financial Services. |
| 09/16/2025 | House committee actions | Committee Consideration and Mark-up Session Held |
| 09/16/2025 | House committee actions | Ordered to be Reported (Amended) by the Yeas and Nays: 50 - 0. |
| 11/04/2025 | Library of Congress | Reported (Amended) by the Committee on Financial Services. H. Rept. 119-361. |
| 11/04/2025 | House floor actions | Reported (Amended) by the Committee on Financial Services. H. Rept. 119-361. |
| 11/04/2025 | House floor actions | Placed on the Union Calendar, Calendar No. 313. |
| 06/24/2026 | House floor actions | Mr. Hill (AR) moved to suspend the rules and pass the bill, as amended. |
| 06/24/2026 | House floor actions | Considered under suspension of the rules. (consideration: CR H4222-4226; text: CR H4222-4223) |
| 06/24/2026 | House floor actions | DEBATE - The House proceeded with forty minutes of debate on H.R. 2478. |
| 06/24/2026 | House floor actions | At the conclusion of debate, the chair put the question on the motion to suspend the rules. Mr. Hill (AR) objected to the vote on the grounds that a quorum was not present. Further proceedings on the motion were postponed. The point of no quorum was considered as withdrawn. |
| 06/25/2026 | House floor actions | Considered as unfinished business. (consideration: CR H4251-4252) |
| 06/25/2026 | Library of Congress | Passed/agreed to in House: On motion to suspend the rules and pass the bill, as amended Agreed to by the Yeas and Nays: (2/3 required): 414 - 2 (Roll no. 227). |
| 06/25/2026 | House floor actions | On motion to suspend the rules and pass the bill, as amended Agreed to by the Yeas and Nays: (2/3 required): 414 - 2 (Roll no. 227). |
| 06/25/2026 | House floor actions | Motion to reconsider laid on the table Agreed to without objection. |
| 07/13/2026 | Senate | Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs. |
| Title Type | Title |
|---|---|
| Short Titles from RFS (Referred to Senate) bill text | Financial Exploitation Prevention Act of 2025 |
| Short Title(s) as Passed House | Financial Exploitation Prevention Act of 2025 |
| Official Titles from EH (Engrossed in House) bill text | To amend the Investment Company Act of 1940 to postpone the date of payment or satisfaction upon redemption of certain securities in the case of the financial exploitation of specified adults, and for other purposes. |
| Short Title(s) as Reported to House | Financial Exploitation Prevention Act of 2025 |
| Display Title | Financial Exploitation Prevention Act of 2025 |
| Short Title(s) as Introduced | Financial Exploitation Prevention Act of 2025 |
| Official Title as Introduced | To amend the Investment Company Act of 1940 to postpone the date of payment or satisfaction upon redemption of certain securities in the case of the financial exploitation of specified adults, and for other purposes. |
There are no amendments to this bill.
* = Original cosponsor
| Committee | Activity |
|---|---|
| Senate - Banking, Housing, and Urban Affairs Committee | 07/13/2026 Referred To |
| House - Financial Services Committee | 11/04/2025 Reported By |
| House - Financial Services Committee | 09/16/2025 Markup By |
| House - Financial Services Committee | 03/27/2025 Referred To |
Policy Area: Finance and Financial Sector
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