The Securities Compliance Podcast Season 2 Episode 14 - Lessons From The Front Lines - Protecting Our Seniors and Vulnerable Investors

Podcast

Securities Compliance Podcast: Compliance in Context

On Episode 14 of Season 2 of the Securities Compliance Podcast: Compliance in Context, host Patrick D. Hayes welcomes Enforcement and Investigations Chief Richard Szuch of the New Jersey Bureau of Securities to discuss one of the most critical issues affecting the investment management industry—namely—how firms can address issues and challenges with senior investors and investors with diminished capacity.

Interview

• The importance of investor protection

• What is the Bressler Map and what is its purpose?

• What is the mission of the NASAA Senior Diminished Capacity Committee?

• How has the “NASAA Model Act to Protect Vulnerable Adults from Financial Exploitation” impacted the industry?

• What expectations should firms have in order to properly supervise these activities?

• Enforcement trends in the area of senior investor exploitation

• How will investor protection continue developing in the future, both from an industry side and a legal/compliance side?

Quotes

“I would say, from the very beginning I was keeping an eye on victims, their profiles, and how they could be exploited. We definitely had cases, when I was a prosecutor, that were ‘white collar type crimes.’ And obviously bad actors are looking to exploit people that are vulnerable, whether it’s their age or if they have some other vulnerability.” - Richard Szuch

“Every state had a law that applies to exploitation to older people but it’s usually about their personal safety, whether their home is secure, whether they’re physically okay. Some states have exploitation regarding finances in their laws. But then there’s been a new group of laws that have developed with the advent of NASAA’s Model Act.” - Richard Szuch

“40 or 50 percent of the investment advisory firms surveyed had not really changed their way of doing business in the past five years. So if I were to say that there was one thing that really needs to get out there, it’s education for the investors and for the firms, about the importance of this structure to be put around their business.” - Richard Szuch

“NASAA just put out (with the SCC and FINRA) a training module that, in essence, mimics what I used to do when I was in private practice, to train firms about what they needed to know.” - Richard Szuch

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About the Securities Compliance Podcast: Compliance in Context

Introducing the Securities Compliance Podcast: Compliance in Context presented by Calfee, Halter & Griswold and the National Society of Compliance Professionals and hosted by Patrick D. Hayes, Senior Counsel and leader of Calfee's Investment Management practice.

Designed as a personal master class for the securities legal and compliance professional, this podcast embodies Patrick’s passion to help you put Compliance In Context™ by combining the technical expertise of industry thought leaders and innovators with the practical experience of doers and key decision makers.

Listeners will find the podcast on Apple Podcast, Google Podcast, Spotify and Stitcher.

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The opinions expressed by guest speakers and panelists during Securities Compliance Podcasts may not necessarily reflect the viewpoints of the attorneys and professionals of Calfee, Halter & Griswold LLP or its subsidiaries or affiliates. Calfee’s educational content is intended to inform and educate readers about legal developments and is not intended as legal advice for any specific individual or specific situation. Please consult with your attorney regarding any legal questions you may have. With regard to all content including case studies or descriptions, past outcomes do not predict future results.