Financial Exploitation Prevention Act of 2025
Official title: To amend the Investment Company Act of 1940 to postpone the date of payment or satisfaction upon redemption of certain securities in the case of the financial … Show full official titleShow less
Official title: To amend the Investment Company Act of 1940 to postpone the date of payment or satisfaction upon redemption of certain securities in the case of the financial exploitation of specified adults, and for other purposes.
More subjectsShow fewer subjects
| Date | Chamber | What was voted on | Result | Yes–No | |
|---|---|---|---|---|---|
| Jun 25, 2026 | House · vote #227 | On Motion to Suspend the Rules and Pass, as Amended | Passed | 414–2 | See who voted → |
Have a question about what this bill does? Ask in plain English; the answer is drawn from the bill's actual text and official record, and it'll tell you when something isn't in the text rather than guess.
Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
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. In the event of delay, the company must hold the amounts related to the redemption in a demand deposit account. The bill also establishes notification requirements.
The bill requires the registered open-end investment company and transfer agent to notify the Securities and Exchange Commission (SEC) if they elect to comply with the procedures established under this bill.
Additionally, the SEC must make recommendations to address the financial exploitation of these adults.
- Engrossed in House Formatted Text PDF Formatted XML
- Introduced in House Formatted Text PDF Formatted XML
- Referred in Senate Formatted Text PDF Formatted XML
- Reported in House Formatted Text PDF Formatted XML
- INSURED RETIREMENT INSTITUTE
- INVESTMENT COMPANY INSTITUTE
- MINDSET ADVOCACY, LLC
- FINANCIAL SERVICES INSTITUTE
- INSURED RETIREMENT INSTITUTE
- INVESTMENT COMPANY INSTITUTE
Bodies those filers lobbied
- HOUSE OF REPRESENTATIVES
- SENATE
- Labor, Dept of (DOL)
- Securities & Exchange Commission (SEC)
- Treasury, Dept of
- Internal Revenue Service (IRS)
- White House Office
- Centers For Medicare and Medicaid Services (CMS)
Cite this page
U.S. Congress. (2026). H.R. 2478: Financial Exploitation Prevention Act of 2025. 119th Congress. Open America. https://openamerica.io/bill/119-HR-2478/
"H.R. 2478: Financial Exploitation Prevention Act of 2025." 119th Congress, 2026, Open America, https://openamerica.io/bill/119-HR-2478/.
H.R. 2478, 119th Cong. (2026), https://openamerica.io/bill/119-HR-2478/.
[H.R. 2478: Financial Exploitation Prevention Act of 2025](https://openamerica.io/bill/119-HR-2478/)