The North American Securities Administrators Association (NASAA) announced on Monday that its membership has voted to adopt a model act designed to protect seniors and other vulnerable adults from financial exploitation.

The act can be adopted as legislation during state legislative sessions or implemented by regulation, depending on the jurisdiction, NASAA says.

Among other things, the model act: requires brokers to report suspected financial exploitation; authorizes disclosure of suspected abuse to designated third parties; and enables brokers to delay disbursements for up to 15 business days if financial exploitation is suspected. In addition, the act provides immunity from administrative or civil liability for brokers and investment advisors for taking actions, such as delaying disbursements.

“The NASAA model act will help securities regulators, investment advisprs and broker-dealers, as well as Adult Protective Services agencies work in partnership to protect our most vulnerable investors,” says Judith Shaw, president of NASAA and Maine Securities Administrator. “I am pleased that the NASAA membership adopted this model act, which now is available for individual jurisdictions throughout the United States to enact as legislation or implement through regulation.”

Shaw notes the act’s mandatory reporting requirement, along with the immunity provision, “will create incentives” for brokers and investment advisors to report possible exploitation as soon as possible. “The ability to have a regulator assess the situation and determine whether additional resources should be brought to bear is a key component of any responsible approach intended to provide meaningful protection to vulnerable investors,” Shaw says. “Requiring reporting at the individual agent and advisor level is appropriate because these individuals often have closer relationships with their clients and customers and time is of the essence when fighting elder financial exploitation.”

The model act was developed by a NASAA working group, and was submitted to its membership for consideration in December 2015.