2023 Texas Statutes › Government Code › Title 12 - Securities Act › Chapter 4004 - Regulation of Dealers, Investment Advisers, Dealers' Agents, and Investment Adviser Representatives › Subchapter H. Requirements for Protection of Vulnerable Adults From Financial Exploitation › Section 4004.352. Reporting Suspected Financial Exploitation of Vulnerable Adults

Sec. 4004.352.  REPORTING SUSPECTED FINANCIAL EXPLOITATION OF VULNERABLE ADULTS.  (a)  If a securities professional or a person serving in a legal capacity for a dealer or investment adviser has cause to believe that financial exploitation of a vulnerable adult who is an account holder with the dealer or investment adviser has occurred, is occurring, or has been attempted, the securities professional or person serving in a legal capacity for the dealer or investment adviser shall notify the dealer or investment adviser of the suspected financial exploitation.
(b)  If a dealer or investment adviser is notified of suspected financial exploitation under Subsection (a) or otherwise has cause to believe that financial exploitation of a vulnerable adult who is an account holder with the dealer or investment adviser has occurred, is occurring, or has been attempted, the dealer or investment adviser shall assess the suspected financial exploitation and submit a report to the commissioner, in accordance with rules adopted under Section 4004.353, and the department in the same manner as and containing the same information required to be included in a report under Section 48.051, Human Resources Code.  The dealer or investment adviser shall submit the reports required by this subsection not later than the earlier of:
(1)  the date the dealer or investment adviser completes the dealer's or investment adviser's assessment of the suspected financial exploitation; or
(2)  the fifth business day after the date the dealer or investment adviser is notified of the suspected financial exploitation under Subsection (a) or otherwise has cause to believe that the suspected financial exploitation has occurred, is occurring, or has been attempted.
(c)  A dealer or investment adviser who submits a report to the department of suspected financial exploitation of a vulnerable adult under Subsection (b) is not required to make an additional report of suspected abuse, neglect, or exploitation under Section 48.051, Human Resources Code, for the same conduct constituting the reported suspected financial exploitation.
(d)  Each dealer and investment adviser shall adopt internal policies, programs, plans, or procedures for:
(1)  the securities professionals or persons serving in a legal capacity for the dealer or investment adviser to make the notification required under Subsection (a); and
(2)  the dealer or investment adviser to conduct the assessment and submit the reports required under Subsection (b).
(e)  The policies, programs, plans, or procedures adopted under Subsection (d) may authorize the dealer or investment adviser to report the suspected financial exploitation to other appropriate agencies and entities in addition to the commissioner and the department, including the attorney general, the Federal Trade Commission, and the appropriate law enforcement agency.
Added by Acts 2019, 86th Leg., R.S., Ch. 491 (H.B. 4171), Sec. 1.01, eff. January 1, 2022.