IIB 
118TH CONGRESS 
1ST SESSION 
H. R. 500 
IN THE SENATE OF THE UNITED STATES 
JANUARY 31, 2023 
Received; read twice and referred to the Committee on Banking, Housing, and 
Urban Affairs 
AN ACT 
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, 
VerDate Sep 11 2014 
23:34 Jan 31, 2023
Jkt 039200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H500.RFS
H500
pbinns on DSKJLVW7X2PROD with $$_JOB
HR 500 RFS
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Financial Exploitation 
Prevention Act of 2023’’. 
SEC. 2. REDEMPTION OF CERTAIN SECURITIES POST-
PONED. 
(a) IN GENERAL.—Section 22 of the Investment 
Company Act of 1940 (15 U.S.C. 80a–22) is amended by 
adding at the end the following: 
‘‘(h) REQUIREMENTS WITH RESPECT TO NON-INSTI-
TUTIONAL DIRECT AT-FUND ACCOUNTS.— 
‘‘(1) ELECTION.— 
‘‘(A) IN GENERAL.—A registered open-end 
investment company and a transfer agent de-
scribed under paragraph (2) may elect to com-
ply with the requirements under paragraph (2) 
and subsection (i) by notifying the Commission 
of such election. 
‘‘(B) EFFECT OF ELECTION.—Paragraph 
(2) and subsection (i) shall only apply to a reg-
istered open-end investment company and a 
transfer agent that have made the election 
under subparagraph (A). 
‘‘(2) REQUIREMENTS.—In the case of a cus-
tomer who is a holder of a non-institutional account 
held directly with a registered open-end investment 
company and serviced by a transfer agent (a ‘direct- 
VerDate Sep 11 2014 
23:34 Jan 31, 2023
Jkt 039200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H500.RFS
H500
pbinns on DSKJLVW7X2PROD with $$_JOB
HR 500 RFS
at-fund account’), the company and transfer agent 
shall— 
‘‘(A) request from such customer the name 
and contact information of at least one indi-
vidual who— 
‘‘(i) is at the time of such request an 
adult; and 
‘‘(ii) may be contacted with respect to 
such account; 
‘‘(B) document and retain the information 
received pursuant to subparagraph (A); and 
‘‘(C) disclose to such customer in writing 
(including through electronic delivery) that such 
company or transfer agent may contact an indi-
vidual specified pursuant to subparagraph (A) 
with respect to the account of such customer 
to— 
‘‘(i) address possible financial exploi-
tation of such customer; 
‘‘(ii) confirm the contact information 
or health status of the customer; or 
‘‘(iii) identify any legal guardian, ex-
ecutor, trustee, or holder of a power of at-
torney of the customer. 
VerDate Sep 11 2014 
23:34 Jan 31, 2023
Jkt 039200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H500.RFS
H500
pbinns on DSKJLVW7X2PROD with $$_JOB
HR 500 RFS
‘‘(i) REDEMPTION OF CERTAIN SECURITIES POST-
PONED.— 
‘‘(1) IN GENERAL.—Notwithstanding subsection 
(e), a registered open-end investment company or a 
transfer agent acting on behalf of such company 
may postpone the date of payment or satisfaction 
upon redemption of any redeemable security in ac-
cordance with its terms for more than seven days 
after the tender of such security to such company or 
its agent designated for that purpose for redemption 
if such company or agent reasonably believes that— 
‘‘(A) the redemption is requested by a se-
curity holder who is a specified adult; and 
‘‘(B) financial exploitation has occurred, is 
occurring, or has been attempted with respect 
to such redemption. 
‘‘(2) DURATION.— 
‘‘(A) IN GENERAL.—Except as provided in 
subparagraphs (B) and (C), a registered open- 
end investment company or a transfer agent 
acting on behalf of such company may postpone 
the date of payment or satisfaction upon re-
demption of a redeemable security under para-
graph (1) for a period of not more than 15 
business days. 
VerDate Sep 11 2014 
23:34 Jan 31, 2023
Jkt 039200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H500.RFS
H500
pbinns on DSKJLVW7X2PROD with $$_JOB
HR 500 RFS
‘‘(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— 
‘‘(i) reasonably believes that— 
‘‘(I) the redemption is requested 
by a security holder who is a specified 
adult; and 
‘‘(II) financial exploitation has 
occurred, is occurring, or has been at-
tempted with respect to such redemp-
tion; 
‘‘(ii) subject to subparagraph (D), not 
later than 2 days after making a deter-
mination under clause (i), notifies the indi-
viduals specified by such security holder 
under subsection (h)(2)(A) in writing (in-
cluding through electronic delivery) of the 
extension of the period described in sub-
paragraph (A) under this subparagraph 
and the reason for such extension; 
VerDate Sep 11 2014 
23:34 Jan 31, 2023
Jkt 039200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H500.RFS
H500
pbinns on DSKJLVW7X2PROD with $$_JOB