Financial Exploitation Prevention Act of 2025

[Congressional Bills 119th Congress] [From the U.S. Government Publishing Office] [S. 2840 Introduced in Senate (IS)] <DOC> 119th CONGRESS 1st Session S. 2840 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. _______________________________________________________________________ IN THE SENATE OF THE UNITED STATES September 17 (legislative day, September 16), 2025 Mr. Hagerty (for himself and Mr. Gallego) introduced the following bill; which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs _______________________________________________________________________ A BILL 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. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. SHORT TITLE. This Act may be cited as the ``Financial Exploitation Prevention Act of 2025''. SEC. 2. REDEMPTION OF CERTAIN SECURITIES POSTPONED. (a) In General.--Section 22 of the Investment Company Act of 1940 (15 U.S.C. 80a-22) is amended by adding at the end the following: ``(h) Requirements With Respect to Non-Institutional Direct At-Fund Accounts.-- ``(1) Election.-- ``(A) In general.--A registered open-end investment company and a transfer agent described in paragraph (2) may elect to comply with the requirements under paragraph (2) and subsection (i) by notifying the Commission of that election. ``(B) Effect of election.--Paragraph (2) and subsection (i) shall only apply to a registered open- end investment company and a transfer agent that have made an election under subparagraph (A). ``(2) Requirements.--In the case of a customer who is a holder of a non-institut