(The Center Square) – Legislation to address investment scams against seniors may be considered in the Illinois House after facing severe criticism in the state Senate.
Senate Bill 1551 would allow financial advisors to delay investments if there is suspicion of financial exploitation. It would also expand mandated reporting requirements by advisors to state agencies.
The bill’s sponsor, state Sen. Steve Stadelman, D-Rockford, addressed concerns raised on the Senate floor by state Sen. Jason Plummer, R-Edwardsville.
“It just needs to be pointed out that everyone in the financial industry, including the advisors, support this legislation. These are tools that are provided in 42 other states. Everyone in the industry realizes this is an important and reasonable step,” Stadelman said.
Plummer said Illinois bankers and credit unions opposed the measure, but Stadelman insisted that financial advisors support SB 1551.
“We had a lot of discussions with the financial institutions, the bankers. They provided a lot of this language that is incorporated into this bill. This is the final product. The only opposition I heard from Illinois bankers was having to report to the two state agencies. I would argue providing information is important to help crack down on this problem,” Stadelman said.
An amendment to the bill would require financial advisors to notify the Illinois Department on Aging and the Illinois Securities Department of requested disbursements or transactions.
Plummer said no other states had this legislation, which he said would not protect seniors from exploitation.
“This is an unworkable piece of legislation. It’s not going to protect seniors from exploitation, OK. There’s already plenty of examples of how that system is in place and could be improved upon, but this isn’t one of them, and it sets every organization up that this bill impacts for severe liability,” Plummer said. “I understand we all want to protect seniors, but this is a terrible piece of legislation and I urge a ‘no’ vote along with everyone it impacts.”
Senators approved the measure by a vote of 38-17-1. The measure now sits in the House Judiciary Civil Committee, with state Rep. Dave Vella, D-Loves Park, as chief sponsor.
