A new bill passed by the New Hampshire Legislature and signed into law by Gov. Chris Sununu will give financial broker-dealers and investment advisers the ability to delay withdraw requests from senior citizen clients who they believe are being financially exploited.
“I’m not known for one that is liking regulations, but when you have a vulnerable population and these consequences of the issues are devastating financially, it’s life-changing for the individual and their family,” said Sen. Bob Giuda, R-Warren, who was one of the sponsors of the bill. “There’s no perfect legislation, but it provides the ability for a professional to err on the side of caution.”
Giuda, who represents the Haverhill area, said he has received an influx of scam calls since he became a senior citizen.
“They’re getting more and more creative, more and more effective, and more and more subtle at the same time,” Giuda said, adding that he has received calls from scammers who use area phone numbers to make them seem more legitimate. “That’s the danger we’re trying to protect against.”
It can be incredibly easy for someone to lose their savings, and once they do, that money could be nearly impossible to recover.
“I think the public is becoming more informed about potential attempts of fraud over the internet, but this still is happening,” said Tim Fisher, a financial adviser and board member of Financial Planning Association of Northern New England, which advocated for the bill. “My mother was scammed. Fortunately, I stopped the scam, so I think a lot of us have been involved in or had relatives that were taken advantage of.”
While there are laws in place against wire fraud and other forms of scams, the new law adds another layer of protection. Previously, there was potential a financial adviser could be sued if they stepped in and stopped a money transfer. That could make professionals “leery to act on suspected fraud,” said Fisher, who testified in front of the Legislature in favor of the law. “If I’m the adviser, I now can refuse to do that without the potential of litigation.”
Liz Sauchelli can be reached at esauchelli@vnews.com or 603-727-3221.
