Financial Exploitation Prevention Act of 2025
Mutual fund companies that choose to participate can temporarily block customer withdrawals for up to 15 business days if they suspect that an investor who is 65 or older, or an adult with an impairment, is being financially exploited. The fund can extend that hold for an additional 10 business days while it conducts an internal review, and state regulators or courts can order further extensions. Participating funds must ask direct account holders for a trusted adult contact who can be alerted if a payout is paused, and the delayed funds must be held in a deposit account while the review is underway.
What this bill touches.
Who it helps · who it burdens.
Who it helps
- participating mutual funds and transfer agentsGain legal authority under federal law to delay mutual fund redemption payouts beyond the standard 7-day limit for 15 to 25 business days (or longer if ordered by a regulator or court) when financial exploitation of a vulnerable adult is suspected (Sec. 2(a)(i)(1)–(2)).
- older and vulnerable adult mutual fund investorsGain financial safeguards against unauthorized or coerced withdrawals through delayed redemptions and potential alerts sent to their designated trusted adult contact (Sec. 2(a)(h)(2)(C), Sec. 2(a)(i)(1)–(2)).
Who it burdens
- participating mutual funds and transfer agentsMust collect and store trusted contact information from direct account holders, disclose exploitation policies, hold delayed redemption payouts in demand deposit accounts, update prospectuses, conduct internal reviews, and maintain extensive compliance records for SEC inspection (Sec. 2(a)(h)(2), Sec. 2(a)(i)(2)(B)–(G)).
- older and vulnerable adult mutual fund investorsSubject to having their investment redemptions delayed for 15 to 25 business days (or longer if ordered by a court or agency) if a fund or transfer agent reasonably suspects financial exploitation (Sec. 2(a)(i)(1)–(2)).
- Securities and Exchange CommissionMust track opt-in notices from participating funds, review retained delay records upon request, and consult with other financial regulators to draft and submit a report to Congress within one year on combating financial exploitation (Sec. 2(a)(h)(1), Sec. 2(a)(i)(2)(G), Sec. 2(b)).
The provisions, in plain language.
Show all 8 provisions
Requires participating mutual funds and transfer agents to ask direct account holders for the name of a trusted adult contact and disclose that the contact may be alerted if exploitation, health concerns, or legal guardianship issues arise.
Permits participating funds and transfer agents to delay paying out share redemptions for up to 15 business days if they reasonably suspect financial exploitation of an adult age 65 or older or an adult with an impairment.
Allows funds to extend a redemption delay by an additional 10 business days (or longer if ordered by a court or regulator) while holding the money in a deposit account, conducting an internal review, and notifying the customer's trusted contact within two days.
Directs the SEC, within one year and in consultation with other financial regulators, to report to Congress with recommendations for legislative and regulatory actions to combat the financial exploitation of seniors and vulnerable adults.
Allows mutual funds and transfer agents to opt in to federal anti-exploitation rules by notifying the Securities and Exchange Commission (SEC).
Requires participating funds and transfer agents to establish formal internal policies to identify suspected exploitation, assign staff authorized to pause payouts, and decide whether to release or reinvest withheld funds.
Requires mutual funds to notify investors in their prospectuses that share redemptions may be temporarily delayed to prevent financial exploitation.
Requires participating funds and transfer agents to retain detailed records of all redemption delays, findings, notifications, and internal reviews, and to provide them to the SEC upon request.
Requires participating mutual funds and transfer agents to ask direct account holders for the name of a trusted adult contact and disclose that the contact may be alerted if exploitation, health concerns, or legal guardianship issues arise.
Permits participating funds and transfer agents to delay paying out share redemptions for up to 15 business days if they reasonably suspect financial exploitation of an adult age 65 or older or an adult with an impairment.
Allows funds to extend a redemption delay by an additional 10 business days (or longer if ordered by a court or regulator) while holding the money in a deposit account, conducting an internal review, and notifying the customer's trusted contact within two days.
Directs the SEC, within one year and in consultation with other financial regulators, to report to Congress with recommendations for legislative and regulatory actions to combat the financial exploitation of seniors and vulnerable adults.
How your members of Congress line up
How members voted on Financial Exploitation Prevention Act of 2025.
Recorded roll calls on this bill, most recent first. Open one to see each member's position.
How it moved.
Show all 15 actions
- Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
- Motion to reconsider laid on the table Agreed to without objection.
- On motion to suspend the rules and pass the bill, as amended Agreed to by the Yeas and Nays: (2/3 required): 414 - 2 (Roll no. 227).
- Passed/agreed to in House: On motion to suspend the rules and pass the bill, as amended Agreed to by the Yeas and Nays: (2/3 required): 414 - 2 (Roll no. 227).
- Considered as unfinished business. (consideration: CR H4251-4252)
- At the conclusion of debate, the chair put the question on the motion to suspend the rules. Mr. Hill (AR) objected to the vote on the grounds that a quorum was not present. Further proceedings on the motion were postponed. The point of no quorum was considered as withdrawn.
- DEBATE - The House proceeded with forty minutes of debate on H.R. 2478.
- Considered under suspension of the rules. (consideration: CR H4222-4226; text: CR H4222-4223)
- Mr. Hill (AR) moved to suspend the rules and pass the bill, as amended.
- Placed on the Union Calendar, Calendar No. 313.
- Reported (Amended) by the Committee on Financial Services. H. Rept. 119-361.
- Ordered to be Reported (Amended) by the Yeas and Nays: 50 - 0.
- Committee Consideration and Mark-up Session Held
- Referred to the House Committee on Financial Services.
- Introduced in House
- Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
- Motion to reconsider laid on the table Agreed to without objection.
- On motion to suspend the rules and pass the bill, as amended Agreed to by the Yeas and Nays: (2/3 required): 414 - 2 (Roll no. 227).
- Passed/agreed to in House: On motion to suspend the rules and pass the bill, as amended Agreed to by the Yeas and Nays: (2/3 required): 414 - 2 (Roll no. 227).
- Reported (Amended) by the Committee on Financial Services. H. Rept. 119-361.
- Ordered to be Reported (Amended) by the Yeas and Nays: 50 - 0.
- Introduced in House
Read it for yourself.
Sources & provenance
Cite this page
Civic Herald. “Financial Exploitation Prevention Act of 2025 (H.R. 2478, 119th Congress).” https://civicherald.app/bills/119-hr-2478. Congress.gov record as of Jul 15, 2026.