2020 Alaska Statutes
Title 45. Trade and Commerce
Chapter 56. Alaska Securities Act
Article 2. Broker-Dealers, Agents, Investment Advisers, Investment Adviser Representatives, and Federal Covered Investment Advisers.
Sec. 45.56.430. Protecting older and vulnerable adults from financial exploitation.
(a) If a broker-dealer, investment adviser, or qualified individual reasonably believes that the financial exploitation of a covered adult may have occurred, may have been attempted, or is being attempted, the broker-dealer, investment adviser, or qualified individual shall notify adult protective services and the administrator not later than five days after the broker-dealer, investment adviser, or qualified individual develops the reasonable belief that the financial exploitation or attempted financial exploitation has or may have occurred, or is being attempted, except that the broker-dealer, investment adviser, or qualified individual shall notify adult protective services and the administrator immediately upon confirmation of the financial exploitation or attempted financial exploitation of the covered adult.
(b) The requirements of (a) of this section may not be construed to require more than one notification for each occurrence of exploitation or attempted exploitation.
(c) If a broker-dealer, investment adviser, or qualified individual reasonably believes that financial exploitation of a covered adult may have occurred, may have been attempted, or is being attempted, a broker-dealer, investment adviser, or qualified individual may notify a person whom the covered adult previously designated to be notified about financial matters of the covered adult, as well as any other person allowed under state or federal law or regulation, or the rules of a self-regulatory organization, except that the broker-dealer, investment adviser, or qualified individual may not notify a person that is suspected of engaging in financial exploitation or other abuse of the covered adult.
(d) A broker-dealer or investment adviser may delay a disbursement from an account of a covered adult or from an account on which a covered adult is a beneficiary if
(1) the broker-dealer, investment adviser, or qualified individual reasonably believes, after initiating an internal review of the requested disbursement and the suspected financial exploitation of a covered adult, that the requested disbursement may result in financial exploitation of the covered adult; and
(2) the broker-dealer or investment adviser
(A) within two business days after receiving the request for disbursement, provides written notification of the delay and the reason for the delay to all persons authorized to transact business on the account, except to a person that the broker-dealer, investment adviser, or qualified individual reasonably believes has engaged in suspected or attempted financial exploitation of the covered adult;
(B) within two business days after receiving the request for disbursement, notifies adult protective services and the administrator; and
(C) continues as necessary an internal review of the suspected or attempted financial exploitation of the covered adult and, within seven business days after receiving the request for disbursement, reports the status of the investigation to adult protective services and the administrator, and provides additional status updates to the administrator and adult protective services upon request.
(e) A disbursement delay under (d) of this section expires when the earlier of the following events occurs:
(1) the broker-dealer or investment adviser determines that the disbursement will not result in financial exploitation of the covered adult;
(2) 15 business days after the date on which the broker-dealer or investment adviser first delayed the disbursement, unless
(A) adult protective services or the administrator requests that the broker-dealer or investment adviser extend the delay, in which case the delay expires 25 business days after the date on which the broker-dealer or investment adviser first delayed disbursement; or
(B) adult protective services, the administrator, or the superior court terminates the delay.
(f) Adult protective services, the administrator, the broker-dealer or investment adviser that initiated the delay under (d) or (e) of this section, or another interested person may petition the superior court for an order extending a disbursement delay or providing other relief to a covered adult, and the superior court may enter an order providing the requested relief.
(g) A broker-dealer or investment adviser shall provide access to or copies of records that are relevant to the suspected or attempted financial exploitation of a covered adult to adult protective services and to state law enforcement agencies as part of a referral to adult protective services or an investigation. The records that may be accessed or copied under this subsection include records relating to past transactions that may have involved financial exploitation of the covered adult as well as records relating to the most recent transaction that may involve financial exploitation of the covered adult. Records made available to agencies under this subsection are not public records as defined in AS 40.25.220. This subsection does not limit or impede the authority of the administrator to access or examine the books and records of broker-dealers and investment advisers as otherwise provided by law.
(h) A broker-dealer, investment adviser, or qualified individual acting in good faith and exercising reasonable care under (a) - (g) of this section is immune from administrative or civil liability for a notification, disclosure, disbursement delay, or record sharing under (a) - (g) of this section.
(i) The following constitute the financial exploitation of a covered adult under this section:
(1) the wrongful or unauthorized taking, withholding, appropriation, or use of the money, assets, or other property of a covered adult; or
(2) an act or omission of a person, including an act or omission made through the use of a power of attorney, guardianship, or conservatorship of a covered adult, to
(A) obtain control, through deception, intimidation, or undue influence, over the covered adult's money, assets, or other property to deprive the covered adult of the ownership, use, benefit, or possession of the covered adult's money, assets, or other property; or
(B) convert the ownership, use, benefit, or possession of the covered adult's money, assets, or other property to another person.
(j) In this section,
(1) “adult protective services” means the agency that has the responsibility for providing protective services for adults; in this paragraph,
(A) “agency” has the meaning given in AS 44.64.200;
(B) “protective services” has the meaning given in AS 47.24.900;
(2) “covered adult” means a natural person who is
(A) 60 years of age or older; or
(B) a vulnerable adult;
(3) “qualified individual” means an agent, investment adviser representative, or other person who is acting in a supervisory, compliance, or legal capacity for a broker-dealer or investment adviser.
