Bill Text: MS HB1003 | 2017 | Regular Session | Introduced
Bill Title: Securities law; require brokers who make reports about vulnerable persons to send copy to Secretary of State.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Failed) 2017-02-09 - Died On Calendar [HB1003 Detail]
Download: Mississippi-2017-HB1003-Introduced.html
MISSISSIPPI LEGISLATURE
2017 Regular Session
To: Banking and Financial Services
By: Representative Zuber
House Bill 1003
AN ACT TO CREATE NEW SECTION 75-71-413, MISSISSIPPI CODE OF 1972, TO REQUIRE BROKER-DEALERS AND INVESTMENT ADVISERS REGISTERED UNDER THE MISSISSIPPI SECURITIES ACT WHO ARE REQUIRED TO FILE A REPORT WITH THE DEPARTMENT OF HUMAN SERVICES UNDER THE MISSISSIPPI VULNERABLE PERSONS ACT UPON SUSPICION THAT A VULNERABLE PERSON IS BEING EXPLOITED TO IMMEDIATELY FORWARD A COPY OF THE REPORT TO THE SECRETARY OF STATE; TO PROVIDE THAT IF A BROKER-DEALER OR INVESTMENT ADVISER REASONABLY BELIEVES THAT A REQUESTED DISBURSEMENT MAY RESULT IN FINANCIAL EXPLOITATION OF ITS CUSTOMER, THAT PERSON MAY DELAY A DISBURSEMENT FOR UP TO FIFTEEN BUSINESS DAYS; TO PROVIDE THAT IF A DISBURSEMENT IS DELAYED, THE BROKER-DEALER OR INVESTMENT ADVISER SHALL IMMEDIATELY INITIATE AN INTERNAL REVIEW OF THE SUSPECTED OR ATTEMPTED FINANCIAL EXPLOITATION OF THE CUSTOMER AND REPORT THE RESULTS OF THE REVIEW WITHIN SEVEN BUSINESS DAYS; TO PROVIDE THAT DISCLOSURES AND NOTIFICATIONS OF DISBURSEMENT DELAYS SHALL NOT BE MADE TO ANY THIRD PARTY WHO IS SUSPECTED OF FINANCIAL EXPLOITATION OR OTHER ABUSE; TO PROVIDE THAT A PERSON WHO MAKES DISCLOSURES OR DELAYS DISBURSEMENTS UNDER THIS SECTION SHALL BE IMMUNE FROM ANY ADMINISTRATIVE OR CIVIL LIABILITY THAT MIGHT OTHERWISE ARISE FROM COMPLIANCE WITH THIS SECTION OR ACTIVITY AUTHORIZED UNDER THIS SECTION; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. The following shall be codified as Section 75-71-413, Mississippi Code of 1972:
75-71-413. (a) A broker-dealer registered or required to be registered under this chapter or an investment adviser registered or required to be registered under this chapter that is required to file a report with the Department of Human Services under Section 43-47-7 shall immediately forward a copy of the report to the administrator, and may notify any third party previously designated by the customer to receive those disclosures of the suspected financial exploitation.
(b) If the broker-dealer registered or required to be registered under this chapter or the investment adviser registered or required to be registered under this chapter reasonably believes that a requested disbursement may result in financial exploitation of its customer, that person may delay a disbursement not to exceed fifteen (15) business days. If the disbursement is delayed, the person shall immediately notify the administrator and all parties authorized to transact business on or to view the account subject to the delay. The broker-dealer or investment adviser shall immediately initiate an internal review of the suspected or attempted financial exploitation of the customer. The results of the review must be reported to the administrator, the Department of Human Services, and any third party previously notified under subsection (a), within seven (7) business days.
(c) Any delay of a disbursement as authorized by this section will expire upon the earlier of the following:
(1) A determination by the broker-dealer or investment adviser and the administrator that the disbursement will not result in financial exploitation of the eligible adult; or
(2) Fifteen (15) business days, unless the administrator requests that the broker-dealer or investment adviser extend the delay, in which case the delay shall be extended for an additional ten (10) days unless earlier terminated by the administrator or an order of a court of competent jurisdiction.
(3) A court of competent jurisdiction may enter an order extending the delay of the disbursement of funds or may order other protective relief based on the petition of the administrator, broker-dealer or investment adviser that initiated the delay under this section, or other interested party.
(d) Disclosures and notifications of disbursement delays shall not be made to any third party who is suspected of financial exploitation or other abuse.
(e) A person that makes disclosures or delays disbursements under this section shall be immune from any administrative or civil liability that might otherwise arise from compliance with this section or activity authorized under this section.
(f) A person who fails to comply with subsection (a) of this section shall be subject to the same penalties as provided under Section 43-47-7(1)(c).
SECTION 2. This act shall take effect and be in force from and after July 1, 2017.
