2023 Maryland Statutes › Corporations and Associations › Title 11 - Maryland Securities Act › Subtitle 3 - Fraudulent and Other Prohibited Practices › Section 11-307 - Reporting Financial Exploitation of Adults

(a)    (1)    In this section the following words have the meanings indicated.
(2)    “Eligible adult” means an individual who resides in the State and is:
(i)    At least 65 years old; or
(ii)    A vulnerable adult.
(3)    “Financial exploitation” means:
(i)    The wrongful or unauthorized taking, withholding, appropriation, or use of money, assets, or property of an eligible adult; or
(ii)    An act or omission by a person, including through the use of a power of attorney, guardianship, or conservatorship of an eligible adult, to:
1.    Obtain control, through deception, intimidation, or undue influence, over the eligible adult’s money, assets, or property in order to deprive the eligible adult of the ownership, use, benefit, or possession of the money, assets, or property; or
2.    Convert money, assets, or property of the eligible adult in order to deprive the eligible adult of the ownership, use, benefit, or possession of the money, assets, or property.
(4)    “Law enforcement agency” means a State, county, or municipal police department, bureau, or agency.
(5)    “Local department” has the meaning stated in § 14–101 of the Family Law Article.
(6)    “Qualified individual” means an agent, an investment adviser representative, or a person who serves in a supervisory, compliance, or legal capacity for a broker–dealer or an investment adviser.
(7)    “Vulnerable adult” has the meaning stated in § 14–101 of the Family Law Article.
(b)    (1)    A broker–dealer, an investment adviser, or a qualified individual that reasonably believes that an eligible adult has been, is currently, or will be the subject of financial exploitation or attempted financial exploitation:
(i)    Shall notify:
1.    The Commissioner; and
2.    A local department under § 14–302 of the Family Law Article; and
(ii)    May notify a third party designated by the eligible adult and any other third party permitted under State or federal laws or regulations, or the rules of a self–regulatory organization, if the third party is not suspected of financial exploitation, abuse, neglect, or other exploitation of the eligible adult.
(2)    The notice required under paragraph (1)(i) of this subsection shall be given:
(i)    Within 5 days after the broker–dealer, investment adviser, or qualified individual develops the reasonable belief that the eligible adult has been, is currently, or will be the subject of financial exploitation or attempted financial exploitation; or
(ii)    Immediately on confirmation that the eligible adult has been, is currently, or will be the subject of financial exploitation or attempted financial exploitation if the confirmation is made before the 5–day period specified in item (i) of this paragraph expires.
(3)    This subsection may not be construed to require more than one notification under paragraph (1)(i) of this subsection for each occurrence.
(c)    (1)    A broker–dealer or an investment adviser may delay a disbursement from an account of an eligible adult or an account on which an eligible adult is a beneficiary if:
(i)    The broker–dealer, the investment adviser, or a qualified individual reasonably believes, after initiating an internal review of the requested disbursement and any suspected financial exploitation, that the requested disbursement may result in the financial exploitation of an eligible adult; and
(ii)    The broker–dealer, the investment adviser, or a qualified individual:
1.    Within 2 business days after the requested disbursement:
A.    Subject to paragraph (2) of this subsection, provides written notice of the reason for the delay to all parties authorized to transact business on the account; and
B.    Notifies the Commissioner and the local department under § 14–302 of the Family Law Article; and
2.    Continues an internal review of the suspected financial exploitation of the eligible adult.
(2)    The broker–dealer, investment adviser, or qualified individual:
(i)    May not provide the written notice required under paragraph (1) of this subsection to a party the broker–dealer, investment adviser, or qualified individual reasonably believes or suspects is engaging in or attempting to engage in the financial exploitation of the eligible adult; and
(ii)    Shall provide, on request, a status report of the internal review required under paragraph (1) of this subsection to the Commissioner and the local department.
(d)    (1)    A delay of a disbursement authorized under this section shall expire:
(i)    On a determination by the broker–dealer or investment adviser that the disbursement will not result in the financial exploitation of the eligible adult; or
(ii)    Subject to paragraph (2) of this subsection, 15 business days after the date of the disbursement request.
(2)    (i)    The Commissioner or the local department may request the delay of a disbursement for up to 25 business days after the date of the disbursement request.
(ii)    If a request is made under this paragraph, the delay shall continue for 25 business days after the date of the disbursement request unless the Commissioner, the local department, or a court of competent jurisdiction enters an order that terminates or extends the delay.
(e)    (1)    A broker–dealer, an investment adviser, or a qualified individual that in good faith and exercising reasonable care provides notice under subsection (b) of this section shall have immunity from any administrative or civil liability that might otherwise arise from the notice.
(2)    A broker–dealer or an investment adviser that in good faith and exercising reasonable care delays a disbursement under subsection (c) of this section shall have immunity from any administrative or civil liability that might otherwise arise from the delay.
(f)    (1)    A broker–dealer or an investment adviser shall provide access to or copies of records that are relevant to the suspected financial exploitation of an eligible adult:
(i)    As part of the referral to the Commissioner and a local department under subsection (c) of this section; or
(ii)    At the request of the Commissioner, a local department, or a law enforcement agency.
(2)    The records under paragraph (1) of this subsection may include historical records and records that relate to the most recent transactions that may demonstrate the financial exploitation of an eligible adult.
(3)    A record made available under this subsection is not a public record under Title 4 of the General Provisions Article.
(4)    This subsection may not be interpreted to limit the authority of the Commissioner to access or examine the books or records of a broker–dealer or an investment adviser.