Congress·In Committee·S. 2840
Financial Exploitation Prevention Act of 2025
Congress would let mutual funds delay cash-out payments to help stop exploitation of older investors
Part of: Bills Target Senior Financial Exploitation with Mutual Fund Withdrawal Delays
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Stalled
No legislative action in over 90 days.
Legislative Progress
Senate
Key Points
- Lets mutual funds and their transfer agents delay paying out a redemption (a cash-out) when they reasonably suspect financial exploitation.
- Applies to people 65 and older, and to adults 18+ who the fund/agent reasonably believes have an impairment that makes them unable to protect their interests.
- If a delay is used, the payout can be held up to 15 business days, with a possible extra 10 business days after certain steps, and it can be extended further by a state regulator or court.
- For direct-at-fund accounts, the fund/agent must ask for at least one trusted contact person and tell the customer they may contact that person if exploitation is suspected or to confirm the customer’s status.
- Requires internal procedures, recordkeeping, and disclosures in fund documents, and directs the SEC to send Congress recommendations within 1 year after the law takes effect.
Impact Analysis
Personal Impact
How this policy affects specific groups of people
Negative Impacts(5)
Mixed Impacts(7)
Milestones
2 milestones2 actions
Sep 17, 2025
Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
Sent to a congressional committee for expert review. The committee decides whether this bill moves forward.
Sep 17, 2025
Introduced in Senate
The bill was officially filed and given a number. It now enters the legislative queue.
Votes
No votes have been recorded for this legislation yet.
Source Information
Document Type
Congressional Bill
Official Title
Financial Exploitation Prevention Act of 2025
Bill NumberS 2840
Congress119th Congress
ChamberSenate
Latest ActionRead twice and referred to the Committee on Banking, Housing, and Urban Affairs.
Data Sources
Sponsor
Cosponsors
(7)D: 5R: 2
Analysis generated by AI. Always verify with official sources.