H.R. 2478 · Passed House · Finance and Financial Sector

Financial Exploitation Prevention Act of 2025

Sponsor: Ann Wagner (R-MO)

What it does

• Allows an open-end investment company or its transfer agent to delay redeeming a security when it reasonably believes the redemption involves financial exploitation of a vulnerable investor.
• Covers investors age 65 or older and adults unable to protect their own interests because of a mental or physical impairment.
• Permits an initial delay of up to 15 days and an additional 10 days after a determination of exploitation, with further extensions by a state regulator, agency, or court.
• Requires the company to hold the redemption amount in a demand deposit account during the delay.
• Establishes notification requirements, including notice to the Securities and Exchange Commission.

Official summary

Financial Exploitation Prevention Act of 2025 This bill establishes procedures for delaying the redemption of certain securities if an investment company or agent believes that an older individual or an individual with certain impairments has been financially exploited. Specifically, the bill allows for the delay of the redemption of a security issued by an open-end investment management company and serviced by a transfer agent if the company or agent reasonably believes the redemption involves the financial exploitation of an individual (1) age 65 or older, or (2) age 18 or older who is unable to protect his or her own interests due to a mental or physical impairment. (Open-end investment management companies offer securities in pooled investment vehicles such as mutual funds. Transfer agents facilitate certain transactions for corporations and investment companies, including dividend distribution and change of securities ownership.) The company may initially delay the redemption for up to 15 days and, upon making a determination of exploitation, may delay the redemption an additional 10 days. A state regulator, appropriate administrative agency, or court may extend this period…

Latest action

Jul 13, 2026: Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.

Committee: Senate Banking, Housing, and Urban Affairs