Protection of Florida’s Vulnerable Investors

Protection of Florida’s Vulnerable Investors

Jul 6, 2020

On July 1, 2020, Florida’s Governor, Ron DeSantis signed House Bill 813 into law. The new law provides additional protections for certain investors who may be victims of suspected financial exploitation. A vulnerable adult is a person 18 years of age or older whose ability to perform the normal activities of daily living or to provide for his or her own care or protection is impaired due to a mental, emotional, sensory, long-term physical, or developmental disability or dysfunction, or brain damage, or the infirmities of aging. The law allows securities dealers and investment advisers to delay disbursements or transactions of funds or securities from an account of a specified adult or a vulnerable adult under the following conditions:

  • The dealer or investment adviser reasonably believes that financial exploitation of the specified adult has occurred, is occurring, has been attempted, or will be attempted in connection with the disbursement or transaction.
  • Not later than 3 business days after the date on which the delay was first placed, the dealer or investment adviser provides written notice to all parties authorized to transact business on the account and any trusted contact on the account, using the contact information provided on the account, unless the dealer or investment adviser believes that any of the parties are involved in the suspected exploitation.
  • Not later than 3 business days after the date on which the delay was first placed, the dealer or investment adviser notifies the Office of Financial Regulation of the delay.
  • The dealer or investment adviser immediately initiates an internal review of the facts and circumstances that caused the dealer or investment adviser to reasonably believe that the financial exploitation of the specified adult has occurred, is occurring, has been attempted, or will be attempted. 

If you believe you or a loved one is the victim of financial exploitation, you should speak with an attorney to explore your claim in more detail. If you would like to talk to me about losses you have incurred, or any other concerns you may have, please contact me at 1-855-463-9859 or mschwartz@kasslaw.com for a free consultation. You can also request a free case evaluation by sending us a message through our secure contact form.

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Author: Matthew Schwartz

Matthew Schwartz is a Shareholder at Kass Shuler, P.A. where he serves as the practice group leader for their securities litigation and professional negligence practice group. His practice is focused on plaintiff-side securities arbitration and litigation, representing individual investors and institutions in claims against brokerage firms, investment advisors, commodities firms, hedge funds and others. He also represents plaintiffs who have been damaged by their insurance agents, lawyers, accountants and other professionals. He is an accomplished commercial litigator who has handled a variety of business disputes and other consumer claims.