Minnesota has enacted a new statute Minn. Stat. chapter 45A to help fight financial exploitation of persons 65 or older and persons considered vulnerable under the vulnerable adult act (M.S. 626.5572, subd. 21).
An important feature of this statute is that it allows the broker-dealer or investment adviser to take action under the statute without liability. The broker-dealer or adviser may notify third parties of the suspected financial abuse. The notice can be made to persons associated with the account holder and to elder abuse authorities and the commissioner of commerce, but they do not need to give notice to the person suspected of the abuse.
The broker-dealer and adviser may also delay the completion of the financial transaction requested. If the transaction is delayed, then within two days the broker-dealer or investment adviser must give written notice to all person associated with the account (except the alleged wrong-doer) of the hold on the account and the reason for the hold, notify the commissioner of commerce of the delay, and give notice to the common entry point for vulnerable adult financial exploitation (626.5572 subd. 5) and provide documentation and updates of any internal review.
The delayed transaction terminates 15 days after the transaction was first delayed but may be extended another 10 days to a total of 25 days in some cases.