Bill Text: MS SB2911 | 2017 | Regular Session | Engrossed
Bill Title: MS Securities Act; provide additional post-registration requirements to prevent exploitation of vulnerable persons.
Spectrum: Bipartisan Bill
Status: (Passed) 2017-03-27 - Approved by Governor [SB2911 Detail]
Download: Mississippi-2017-SB2911-Engrossed.html
MISSISSIPPI LEGISLATURE
2017 Regular Session
To: Business and Financial Institutions; Finance
By: Senator(s) Doty, Burton, Butler, Hill, Jackson (11th)
Senate Bill 2911
(As Passed the Senate)
AN ACT TO CREATE NEW SECTION 75-71-413, MISSISSIPPI CODE OF 1972, UNDER THE MISSISSIPPI SECURITIES ACT TO PROVIDE ADDITIONAL POST-REGISTRATION REQUIREMENTS FOR CERTAIN BROKER-DEALERS AND INVESTMENT ADVISERS TO PREVENT THE EXPLOITATION OF VULNERABLE PERSONS; 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 pursuant to the Mississippi Vulnerable Persons Act, Sections 43-47-1 et seq., shall immediately forward a copy of the report to the administrator and may notify any third party previously designated by the customer 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, such 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, 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 sooner of:
(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 sooner 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 pursuant to this section shall be immune from any administrative or civil liability that might otherwise arise from compliance with this section or activity authorized under by section.
(f) A person who fails to comply with subsection (a) of this section shall be subject to Section 43-47-7(1)(c) of the Mississippi Vulnerable Persons Act.
SECTION 2. This act shall take effect and be in force from and after July 1, 2017.
