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CIVIC HERALD
HR 2478 · 119th Congress · HouseIn committee

Financial Exploitation Prevention Act of 2025

In plain language: 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.

Provisional: our plain-language summary, pending review.

Provisionalunreviewed: impact, provisions, stakeholders, summary
People affected—not determinable from the text provided; applies to specified adults (individuals aged 65 and older or vulnerable adults) holding direct-at-fund accounts at participating mutual funds, but exact numbers are not specified.
Fiscal magnitude—not determinable from the text provided; no appropriations, revenue provisions, or authorization levels are specified.
Reach28provisional · pending reviewrigor: heuristic llm
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Issues

What this bill touches.

Market protections+28Banking/financial rules+12

The sign shows the bill's direction on each issue (+ toward, − away); the number is its magnitude. Color never encodes good or bad, and never party.

Who it affects

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)).provisional
  • 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)).provisional

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)).provisional
  • 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)).provisional
  • 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)).provisional

Dollar-level funding (FEC sector totals) is coming in a later phase.

What it does

The provisions, in plain language.

  1. 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.

    Sec. 2(a)(h)(2)provisional

  2. 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.

    Sec. 2(a)(i)(1)provisional

  3. 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.

    Sec. 2(a)(i)(2)(B)–(D)provisional

  4. 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.

    Sec. 2(b)provisional

How your members of Congress line up

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Timeline

How it moved.

  1. Jul 13, 2026Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
  2. Jun 25, 2026Motion to reconsider laid on the table Agreed to without objection.
  3. Jun 25, 2026On 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).
  4. Jun 25, 2026Passed/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).
  5. Nov 4, 2025Reported (Amended) by the Committee on Financial Services. H. Rept. 119-361.
  6. Nov 4, 2025Reported (Amended) by the Committee on Financial Services. H. Rept. 119-361.
  7. Sep 16, 2025Ordered to be Reported (Amended) by the Yeas and Nays: 50 - 0.
  8. Mar 27, 2025Introduced in House
  9. Mar 27, 2025Introduced in House

The original text

Read it for yourself.

Read the original text →

Sources & provenance

Congress.govrefreshed 9 days ago

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