Compliance challenges in the world of elder financial exploitation

Abstract

As the Baby Boomer generation ages and retires, those in the financial services industry find themselves on the frontlines of the battle against elder financial exploitation. Whether you define an elder as 60 and older, the historical retirement age of 65, or some other statutory definition of ‘senior’ or ‘elder,’ as individuals age they become more susceptible to scammers, unscrupulous financial professionals and family members interested in separating them from their retirement funds. Whether those funds represent a pension stream, a modest individual retirement account or a well-managed investment portfolio, all are attractive bait for someone determined to increase their wealth at the expense of another. As this paper will explore further, several factors operate together to create the perfect storm for those targeted by exploiters. Professionals in the financial services industry are well positioned to make a difference. The objective of this paper is to provide background information and identify possible practices based on a training programme developed in Maine coupled with state and federal laws and rules that will help to inform the development or enhancement of internal protocols compliance professionals can implement to address the financial exploitation of their vulnerable older clients and customers.