New Hampshire Revised Statutes 421-B:5-507-A – Financial Exploitation of Vulnerable Adults
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(1) For purposes of this section the following words shall have the following meanings unless the context clearly indicates otherwise:
(A) “Eligible adult” means:
(i) A person 65 years of age or older; or
(ii) A person, 18 years of age or older, who is “vulnerable” as defined in N.H. Rev. Stat. § 161-F:43, VII.
(B) “Financial exploitation” means:
(i) The wrongful or unauthorized taking, withholding, appropriation, or use of money, assets, or property of an eligible adult; or
(ii) Any act or omission by a person, whether direct or through the use of a power of attorney, guardianship, or conservatorship of an eligible adult, intended to:
(a) Obtain control over the eligible adult’s money, assets, or property through deception, intimidation, or undue influence, in order to deprive the eligible adult of the ownership, use, benefit, or possession of his or her money, assets, or property; or
(b) Convert money, assets, or property of the eligible adult to deprive such eligible adult of the ownership, use, benefit, or possession of his or her money, assets, or property.
(C) “Qualified individual” means any agent, investment adviser representative, or person who serves in a supervisory, compliance, or legal capacity for a broker-dealer or investment adviser.
(2) If a qualified individual reasonably believes that financial exploitation of an eligible adult may have occurred, may have been attempted, or is being attempted, the qualified individual may promptly notify:
(A) The secretary of state, provided nothing in this section shall affect the reporting requirements of RSA 161-F.
(B) Any third party previously designated by the eligible adult, provided that disclosure shall not be made to any designated third party that is suspected of financial exploitation or other abuse of the eligible adult.
(3) A qualified individual that, in good faith and exercising reasonable care, makes a disclosure of information pursuant to N.H. Rev. Stat. § 421-B:5-507-A, (2) shall be immune from administrative or civil liability that might otherwise arise from such disclosure or for any failure to notify the customer of the disclosure.
(4) A broker-dealer or investment adviser may delay a disbursement from an account of an eligible adult or an account on which an eligible adult is a beneficiary if the broker-dealer, investment adviser, or qualified individual reasonably believes, after initiating an internal review of the requested disbursement and the suspected financial exploitation, that the requested disbursement may result in financial exploitation of an eligible adult, and the broker-dealer or investment adviser:
(A) Not more than 2 business days after the requested disbursement, provides written notification of the delay and the reason for the delay to all parties authorized to transact business on the account, unless any such party is reasonably believed to have engaged in suspected or attempted financial exploitation of the eligible adult;
(B) Not more than 2 business days after the requested disbursement, notifies the secretary of state of such delay; and
(C) Continues its internal review of the suspected or attempted financial exploitation of the eligible adult, as necessary, and reports the investigation’s results to the secretary of state within 7 business days after the day the broker-dealer or investment adviser first delayed disbursement of the funds.
(5) No delay of a disbursement shall continue past the earlier of:
(A) The time required by the broker-dealer or investment adviser to make a determination that the disbursement will not result in financial exploitation of the eligible adult; or
(B) Fifteen business days after the date on which the broker-dealer or investment adviser first delayed disbursement of the funds, unless the secretary of state requests that the broker-dealer or investment adviser extend the delay. Upon such a request, the disbursement shall be delayed no more than 25 business days after the date on which the broker-dealer or investment adviser first delayed disbursement of the funds, unless sooner terminated by the secretary of state or an order of a court of competent jurisdiction.
(6) A court of competent jurisdiction may enter an order extending the delay of the disbursement of funds or may order other protective relief upon the petition of the secretary of state, the broker-dealer or investment adviser that initiated the delay under N.H. Rev. Stat. § 421-B:5-507-A, (4), or other interested party.
(7) A broker-dealer or investment adviser that, in good faith and exercising reasonable care, complies with N.H. Rev. Stat. § 421-B:5-507-A, (4) and (5) shall be immune from any administrative or civil liability that might otherwise arise from such delay in a disbursement in accordance with this section.
(8) 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 an eligible adult to law enforcement, either as part of a referral to law enforcement, or upon request of law enforcement pursuant to an investigation. The records may include historical records as well as records relating to the most recent transaction that may comprise financial exploitation of an eligible adult. Any records made available to law enforcement under this section shall not be considered a “governmental record” as defined in RSA 91-A. Nothing in this provision shall limit or otherwise impede the authority of the secretary of state to access or examine the books and records of broker-dealers and investment advisers as otherwise provided by law.
(A) “Eligible adult” means:
Terms Used In New Hampshire Revised Statutes 421-B:5-507-A
- Agent: means an individual, other than a broker-dealer, who represents a broker-dealer in effecting or attempting to effect purchases or sales of securities or represents an issuer in effecting or attempting to effect purchases or sales of the issuer's securities. See New Hampshire Revised Statutes 421-B:1-102
- Appropriation: The provision of funds, through an annual appropriations act or a permanent law, for federal agencies to make payments out of the Treasury for specified purposes. The formal federal spending process consists of two sequential steps: authorization
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
- Broker-dealer: means a person engaged in the business of effecting transactions in securities for the account of others or for the person's own account. See New Hampshire Revised Statutes 421-B:1-102
- following: when used by way of reference to any section of these laws, shall mean the section next preceding or following that in which such reference is made, unless some other is expressly designated. See New Hampshire Revised Statutes 21:13
- Investment adviser: means a person that, for compensation, engages in the business of advising others, either directly or through publications or writings, as to the value of securities or the advisability of investing in, purchasing, or selling securities or that, for compensation and as a part of a regular business, issues or promulgates analyses or reports concerning securities. See New Hampshire Revised Statutes 421-B:1-102
- Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
- Order: means an order issued pursuant to this chapter. See New Hampshire Revised Statutes 421-B:1-102
- Person: means an individual; corporation; business trust; estate; trust; partnership; limited liability company; association; joint venture; government; governmental subdivision, agency, or instrumentality; public corporation; or any other legal or commercial entity. See New Hampshire Revised Statutes 421-B:1-102
- Petition: means a written request for action by the secretary of state including a staff petition for relief and any petition for rehearing pursuant to RSA 541. See New Hampshire Revised Statutes 421-B:1-102
- Power of attorney: A written instrument which authorizes one person to act as another's agent or attorney. The power of attorney may be for a definite, specific act, or it may be general in nature. The terms of the written power of attorney may specify when it will expire. If not, the power of attorney usually expires when the person granting it dies. Source: OCC
- Secretary of state: means the New Hampshire secretary of state or his or her designee. See New Hampshire Revised Statutes 421-B:1-102
- State: means a state of the United States, the District of Columbia, Puerto Rico, the United States Virgin Islands, or any territory or insular possession subject to the jurisdiction of the United States. See New Hampshire Revised Statutes 421-B:1-102
(i) A person 65 years of age or older; or
(ii) A person, 18 years of age or older, who is “vulnerable” as defined in N.H. Rev. Stat. § 161-F:43, VII.
(B) “Financial exploitation” means:
(i) The wrongful or unauthorized taking, withholding, appropriation, or use of money, assets, or property of an eligible adult; or
(ii) Any act or omission by a person, whether direct or through the use of a power of attorney, guardianship, or conservatorship of an eligible adult, intended to:
(a) Obtain control over the eligible adult’s money, assets, or property through deception, intimidation, or undue influence, in order to deprive the eligible adult of the ownership, use, benefit, or possession of his or her money, assets, or property; or
(b) Convert money, assets, or property of the eligible adult to deprive such eligible adult of the ownership, use, benefit, or possession of his or her money, assets, or property.
(C) “Qualified individual” means any agent, investment adviser representative, or person who serves in a supervisory, compliance, or legal capacity for a broker-dealer or investment adviser.
(2) If a qualified individual reasonably believes that financial exploitation of an eligible adult may have occurred, may have been attempted, or is being attempted, the qualified individual may promptly notify:
(A) The secretary of state, provided nothing in this section shall affect the reporting requirements of RSA 161-F.
(B) Any third party previously designated by the eligible adult, provided that disclosure shall not be made to any designated third party that is suspected of financial exploitation or other abuse of the eligible adult.
(3) A qualified individual that, in good faith and exercising reasonable care, makes a disclosure of information pursuant to N.H. Rev. Stat. § 421-B:5-507-A, (2) shall be immune from administrative or civil liability that might otherwise arise from such disclosure or for any failure to notify the customer of the disclosure.
(4) A broker-dealer or investment adviser may delay a disbursement from an account of an eligible adult or an account on which an eligible adult is a beneficiary if the broker-dealer, investment adviser, or qualified individual reasonably believes, after initiating an internal review of the requested disbursement and the suspected financial exploitation, that the requested disbursement may result in financial exploitation of an eligible adult, and the broker-dealer or investment adviser:
(A) Not more than 2 business days after the requested disbursement, provides written notification of the delay and the reason for the delay to all parties authorized to transact business on the account, unless any such party is reasonably believed to have engaged in suspected or attempted financial exploitation of the eligible adult;
(B) Not more than 2 business days after the requested disbursement, notifies the secretary of state of such delay; and
(C) Continues its internal review of the suspected or attempted financial exploitation of the eligible adult, as necessary, and reports the investigation’s results to the secretary of state within 7 business days after the day the broker-dealer or investment adviser first delayed disbursement of the funds.
(5) No delay of a disbursement shall continue past the earlier of:
(A) The time required by the broker-dealer or investment adviser to make a determination that the disbursement will not result in financial exploitation of the eligible adult; or
(B) Fifteen business days after the date on which the broker-dealer or investment adviser first delayed disbursement of the funds, unless the secretary of state requests that the broker-dealer or investment adviser extend the delay. Upon such a request, the disbursement shall be delayed no more than 25 business days after the date on which the broker-dealer or investment adviser first delayed disbursement of the funds, unless sooner terminated by the secretary of state or an order of a court of competent jurisdiction.
(6) A court of competent jurisdiction may enter an order extending the delay of the disbursement of funds or may order other protective relief upon the petition of the secretary of state, the broker-dealer or investment adviser that initiated the delay under N.H. Rev. Stat. § 421-B:5-507-A, (4), or other interested party.
(7) A broker-dealer or investment adviser that, in good faith and exercising reasonable care, complies with N.H. Rev. Stat. § 421-B:5-507-A, (4) and (5) shall be immune from any administrative or civil liability that might otherwise arise from such delay in a disbursement in accordance with this section.
(8) 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 an eligible adult to law enforcement, either as part of a referral to law enforcement, or upon request of law enforcement pursuant to an investigation. The records may include historical records as well as records relating to the most recent transaction that may comprise financial exploitation of an eligible adult. Any records made available to law enforcement under this section shall not be considered a “governmental record” as defined in RSA 91-A. Nothing in this provision shall limit or otherwise impede the authority of the secretary of state to access or examine the books and records of broker-dealers and investment advisers as otherwise provided by law.