Florida Senate - 2018 SB 662 By Senator Stargel 22-00777B-18 2018662__ 1 A bill to be entitled 2 An act relating to protection for vulnerable 3 investors; creating s. 517.34, F.S.; defining terms; 4 authorizing securities dealers, investment advisers, 5 and associated persons to place temporary holds on 6 transactions regarding certain accounts if the dealer, 7 investment adviser, or associated person believes in 8 good faith that exploitation of specified adults has 9 occurred, is occurring, or has been attempted in 10 connection with the transactions and if the dealer, 11 investment adviser, or associated person complies with 12 specified requirements; providing that such holds 13 expire after a specified timeframe; authorizing 14 dealers, investment advisers, and associated persons 15 to extend holds under certain circumstances for up to 16 a specified timeframe; providing that the length of 17 holds may be shortened or extended by certain courts 18 or agencies; authorizing dealers, investment advisers, 19 and associated persons to provide certain records to 20 the Department of Children and Families or law 21 enforcement agencies upon request; authorizing the 22 department to inform reporting parties of certain 23 information; providing that dealers, investment 24 advisers, and associated persons are immune from 25 liability for certain actions; providing construction; 26 providing an effective date. 27 28 Be It Enacted by the Legislature of the State of Florida: 29 30 Section 1. Section 517.34, Florida Statutes, is created to 31 read: 32 517.34 Protection of specified adults.— 33 (1) As used in this section, the term: 34 (a) “Exploitation” has the same meaning as provided in s. 35 415.102. 36 (b) “Law enforcement agency” means an agency of this state 37 or a political subdivision of this state or of the United States 38 whose primary responsibility is the prevention and detection of 39 crime or the enforcement of the penal laws of this state or the 40 United States, and whose agents and officers are empowered by 41 law to conduct criminal investigations or to make arrests. 42 (c) “Records” has the same meaning as provided in s. 43 415.102. 44 (d) “Specified adult” means a natural person who is 65 45 years of age or older or a vulnerable adult as defined in s. 46 415.102. 47 (2) A dealer, an investment adviser, or an associated 48 person may place a temporary hold on a transaction regarding the 49 account of a specified adult or an account for which a specified 50 adult is a beneficiary or beneficial owner if the dealer, 51 investment adviser, or associated person believes in good faith 52 that exploitation of the specified adult has occurred, is 53 occurring, or has been attempted in connection with the 54 transaction, as follows: 55 (a) Consistent with the requirements of chapter 415, the 56 dealer, investment adviser, or associated person must 57 immediately notify the Department of Children and Families, via 58 its central abuse hotline, of the suspected exploitation. 59 (b) Within 3 business days after placing a temporary hold 60 on a transaction, the dealer, investment adviser, or associated 61 person must orally or in writing attempt to notify all parties 62 authorized to transact business on the account using the contact 63 information provided for the account, unless the dealer, 64 investment adviser, or associated person believes in good faith 65 that any such party engaged or is engaging in the suspected 66 exploitation of the specified adult. 67 (3) A temporary hold under subsection (2) expires 15 68 business days after the date on which the hold was placed. 69 However, the dealer, investment adviser, or associated person 70 may extend the hold for up to 10 additional business days if its 71 review of the available facts and circumstances continues to 72 support its good faith belief that exploitation of the specified 73 adult has occurred, is occurring, or has been attempted. The 74 length of the hold may be shortened or extended at any time by 75 an order of a court of competent jurisdiction or by a written 76 directive from an agency of competent jurisdiction that directs 77 such reduction or extension, including, but not limited to, the 78 Department of Children and Families pursuant to its authority 79 under chapter 415. 80 (4) A dealer, an investment adviser, or an associated 81 person may provide access to or copies of any records that are 82 relevant to the suspected exploitation of a specified adult to 83 the Department of Children and Families or a law enforcement 84 agency at their request. These records may include records of 85 prior transactions in addition to the transactions comprising 86 the suspected exploitation. 87 (5) Notwithstanding any law to the contrary, the Department 88 of Children and Families may inform the reporting party on the 89 status of an investigation initiated under this section and any 90 final disposition. 91 (6) Notwithstanding any law to the contrary, a dealer, an 92 investment adviser, or an associated person is immune from any 93 civil, criminal, or administrative liability for actions taken 94 in accordance with this section. This section may not be 95 construed to form a basis for any civil, criminal, or 96 administrative liability against a dealer, an investment 97 adviser, or an associated person. 98 (7) This section may not be construed to create new rights 99 or obligations of a dealer, an investment adviser, or an 100 associated person under other applicable laws or rules. In 101 addition, this section does not limit the right of a dealer, an 102 investment adviser, or an associated person to otherwise refuse 103 or place a hold on a transaction under other applicable laws or 104 rules or under an applicable customer agreement. 105 Section 2. This act shall take effect July 1, 2018.