I 
117TH CONGRESS 
1ST SESSION H. R. 2265 
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 pur-
poses. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 26, 2021 
Mrs. WAGNER introduced the following bill; which was referred to the 
Committee on Financial Services 
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 exploi-
tation of specified adults, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives 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 2021’’. 
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SEC. 2. REDEMPTION OF CERTAIN SECURITIES POST-
PONED. 
(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) REDEMPTION OF CERTAIN SECURITIES POST-
PONED.— 
‘‘(1) IN GENERAL.—Notwithstanding subsection 
(e), a registered open-end investment company or a 
transfer agent acting on behalf of such company 
may postpone the date of payment or satisfaction 
upon redemption of any redeemable security in ac-
cordance with its terms for more than seven days 
after the tender of such security to such company or 
its agent designated for that purpose for redemption 
if such company or agent reasonably believes that 
such redemption is requested through the financial 
exploitation of a security holder who is a specified 
adult. 
‘‘(2) DURATION.— 
‘‘(A) IN GENERAL.—Except as provided in 
subparagraphs (B) and (C), a registered open- 
end investment company or a transfer agent 
acting on behalf of such company may postpone 
the date of payment or satisfaction upon re-
demption of a redeemable security under para-
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graph (1) for a period of not more than 15 
business days. 
‘‘(B) EXTENSION
UPON
DETERMINATION 
OF
EXPLOITATION.—The period described in 
subparagraph (A) may be extended by an addi-
tional 10 business days if the registered open- 
end investment company or a transfer agent 
acting on behalf of such company determines 
through an internal review that the redemption 
described in such subparagraph is requested 
through the financial exploitation of a security 
holder who is a specified adult. 
‘‘(C) EXTENSION
BY
GOVERNMENT.—A 
State regulator, administrative agency of com-
petent jurisdiction, or court of competent juris-
diction may extend the period described in sub-
paragraph (A). 
‘‘(3) SPECIFIED ADULT DEFINED.—In this sub-
section, the term ‘specified adult’ means— 
‘‘(A) an individual age 65 or older; or 
‘‘(B) an individual age 18 or older who a 
registered open-end investment company or a 
transfer agent acting on behalf of such com-
pany reasonably believes has a mental or phys-
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ical impairment that renders the individual un-
able to protect his or her own interests.’’. 
(b) RECOMMENDATIONS.— 
(1) IN GENERAL.—Not later than 1 year after 
the date of the enactment of this section, the Securi-
ties and Exchange Commission, in consultation with 
the entities specified in paragraph (2), shall submit 
to Congress a report that includes recommendations 
regarding the regulatory and legislative changes nec-
essary to address the financial exploitation of secu-
rity holders who are specified adults (as defined in 
subsection (h)(3) of section 22 of the Investment 
Company Act of 1940 (15 U.S.C. 80a–22), as added 
by this section). 
(2) CONSULTATION.—The entities specified in 
this paragraph are as follows: 
(A) The Commodity Futures Trading 
Commission. 
(B) The Director of the Bureau of Con-
sumer Financial Protection. 
(C) The Financial Industry Regulatory Au-
thority. 
(D) The North American Securities Ad-
ministrators Association. 
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(E) The Board of Governors of the Fed-
eral Reserve System. 
(F) The Comptroller of the Currency. 
(G) The Federal Deposit Insurance Cor-
poration. 
Æ 
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