[Congressional Record Volume 167, Number 67 (Monday, April 19, 2021)]
[House]
[Pages H1910-H1913]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
NATIONAL SENIOR INVESTOR INITIATIVE ACT OF 2021
Ms. PRESSLEY. Madam Speaker, I move to suspend the rules and pass the
bill (H.R. 1565) to create an interdivisional taskforce at the
Securities and Exchange Commission for senior investors.
The Clerk read the title of the bill.
The text of the bill is as follows:
H.R. 1565
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``National Senior Investor
Initiative Act of 2021'' or the ``Senior Security Act of
2021''.
SEC. 2. SENIOR INVESTOR TASKFORCE.
Section 4 of the Securities Exchange Act of 1934 (15 U.S.C.
78d) is amended by adding at the end the following:
``(k) Senior Investor Taskforce.--
``(1) Establishment.--There is established within the
Commission the Senior Investor Taskforce (in this subsection
referred to as the `Taskforce').
``(2) Director of the taskforce.--The head of the Taskforce
shall be the Director, who shall--
``(A) report directly to the Chairman; and
``(B) be appointed by the Chairman, in consultation with
the Commission, from among individuals--
``(i) currently employed by the Commission or from outside
of the Commission; and
``(ii) having experience in advocating for the interests of
senior investors.
``(3) Staffing.--The Chairman shall ensure that--
``(A) the Taskforce is staffed sufficiently to carry out
fully the requirements of this subsection; and
``(B) such staff shall include individuals from the
Division of Enforcement, Office of Compliance Inspections and
Examinations, and Office of Investor Education and Advocacy.
``(4) No compensation for members of taskforce.--All
members of the Taskforce appointed under paragraph (2) or (3)
shall serve without compensation in addition to that received
for their services as officers or employees of the United
States.
``(5) Minimizing duplication of efforts.--In organizing and
staffing the Taskforce, the Chairman shall take such actions
as may be
[[Page H1911]]
necessary to minimize the duplication of efforts within the
divisions and offices described under paragraph (3)(B) and
any other divisions, offices, or taskforces of the
Commission.
``(6) Functions of the taskforce.--The Taskforce shall--
``(A) identify challenges that senior investors encounter,
including problems associated with financial exploitation and
cognitive decline;
``(B) identify areas in which senior investors would
benefit from changes in the regulations of the Commission or
the rules of self-regulatory organizations;
``(C) coordinate, as appropriate, with other offices within
the Commission, other taskforces that may be established
within the Commission, self-regulatory organizations, and the
Elder Justice Coordinating Council; and
``(D) consult, as appropriate, with State securities and
law enforcement authorities, State insurance regulators, and
other Federal agencies.
``(7) Report.--The Taskforce, in coordination, as
appropriate, with the Office of the Investor Advocate and
self-regulatory organizations, and in consultation, as
appropriate, with State securities and law enforcement
authorities, State insurance regulators, and Federal
agencies, shall issue a report every 2 years to the Committee
on Banking, Housing, and Urban Affairs and the Special
Committee on Aging of the Senate and the Committee on
Financial Services of the House of Representatives, the first
of which shall not be issued until after the report described
in section 3 of the National Senior Investor Initiative Act
of 2021 has been issued and considered by the Taskforce,
containing--
``(A) appropriate statistical information and full and
substantive analysis;
``(B) a summary of recent trends and innovations that have
impacted the investment landscape for senior investors;
``(C) a summary of regulatory initiatives that have
concentrated on senior investors and industry practices
related to senior investors;
``(D) key observations, best practices, and areas needing
improvement, involving senior investors identified during
examinations, enforcement actions, and investor education
outreach;
``(E) a summary of the most serious issues encountered by
senior investors, including issues involving financial
products and services;
``(F) an analysis with regard to existing policies and
procedures of brokers, dealers, investment advisers, and
other market participants related to senior investors and
senior investor-related topics and whether these policies and
procedures need to be further developed or refined;
``(G) recommendations for such changes to the regulations,
guidance, and orders of the Commission and self-regulatory
organizations and such legislative actions as may be
appropriate to resolve problems encountered by senior
investors; and
``(H) any other information, as determined appropriate by
the Director of the Taskforce.
``(8) Request for reports.--The Taskforce shall make any
report issued under paragraph (7) available to a Member of
Congress who requests such a report.
``(9) Sunset.--The Taskforce shall terminate after the end
of the 10-year period beginning on the date of the enactment
of this subsection.
``(10) Senior investor defined.--For purposes of this
subsection, the term `senior investor' means an investor over
the age of 65.
``(11) Use of existing funds.--The Commission shall use
existing funds to carry out this subsection.''.
SEC. 3. GAO STUDY.
(a) In General.--Not later than 2 years after the date of
enactment of this Act, the Comptroller General of the United
States shall submit to Congress and the Senior Investor
Taskforce the results of a study of financial exploitation of
senior citizens.
(b) Contents.--The study required under subsection (a)
shall include information with respect to--
(1) economic costs of the financial exploitation of senior
citizens--
(A) associated with losses by victims that were incurred as
a result of the financial exploitation of senior citizens;
(B) incurred by State and Federal agencies, law enforcement
and investigatory agencies, public benefit programs, public
health programs, and other public programs as a result of the
financial exploitation of senior citizens;
(C) incurred by the private sector as a result of the
financial exploitation of senior citizens; and
(D) any other relevant costs that--
(i) result from the financial exploitation of senior
citizens; and
(ii) the Comptroller General determines are necessary and
appropriate to include in order to provide Congress and the
public with a full and accurate understanding of the economic
costs resulting from the financial exploitation of senior
citizens in the United States;
(2) frequency of senior financial exploitation and
correlated or contributing factors--
(A) information about percentage of senior citizens
financially exploited each year; and
(B) information about factors contributing to increased
risk of exploitation, including such factors as race, social
isolation, income, net worth, religion, region, occupation,
education, home-ownership, illness, and loss of spouse; and
(3) policy responses and reporting of senior financial
exploitation--
(A) the degree to which financial exploitation of senior
citizens unreported to authorities;
(B) the reasons that financial exploitation may be
unreported to authorities;
(C) to the extent that suspected elder financial
exploitation is currently being reported--
(i) information regarding which Federal, State, and local
agencies are receiving reports, including adult protective
services, law enforcement, industry, regulators, and
professional licensing boards;
(ii) information regarding what information is being
collected by such agencies; and
(iii) information regarding the actions that are taken by
such agencies upon receipt of the report and any limits on
the agencies' ability to prevent exploitation, such as
jurisdictional limits, a lack of expertise, resource
challenges, or limiting criteria with regard to the types of
victims they are permitted to serve;
(D) an analysis of gaps that may exist in empowering
Federal, State, and local agencies to prevent senior
exploitation or respond effectively to suspected senior
financial exploitation; and
(E) an analysis of the legal hurdles that prevent Federal,
State, and local agencies from effectively partnering with
each other and private professionals to effectively respond
to senior financial exploitation.
(c) Senior Citizen Defined.--For purposes of this section,
the term ``senior citizen'' means an individual over the age
of 65.
The SPEAKER pro tempore. Pursuant to the rule, the gentlewoman from
Massachusetts (Ms. Pressley) and the gentleman from North Carolina (Mr.
McHenry) each will control 20 minutes.
The Chair recognizes the gentlewoman from Massachusetts.
General Leave
Ms. PRESSLEY. Madam Speaker, I ask unanimous consent that all Members
may have 5 legislative days within which to revise and extend their
remarks on this legislation and to insert extraneous material thereon.
The SPEAKER pro tempore. Is there objection to the request of the
gentlewoman from Massachusetts?
There was no objection.
Ms. PRESSLEY. Madam Speaker, I yield myself such time as I may
consume.
Madam Speaker, I rise in support of H.R. 1565, the Senior Security
Act of 2021, which would help protect America's senior investors who
can be disproportionately vulnerable to investment-related frauds.
In 2017 alone, State securities regulators conducted nearly 4,709
investigations, leading to more than 2,100 enforcement actions,
including 255 criminal prosecutions. These actions have resulted in
approximately $486 million in restitution for harmed investors, nearly
$79 million in fines and/or penalties, and 1,985 years in incarceration
or probation being ordered.
The National Council on Aging estimated that elder financial abuse
and fraud costs older Americans from $2.9 billion to $36.5 billion
annually. Moreover, in a February bulletin, the FINRA, the NASAA, and
the SEC's Office of Investor Education and Advocacy noted that COVID-
19's unprecedented quarantines and social isolation may leave senior
investors even more susceptible to financial fraud than ever before.
This bill would establish a Senior Investor Task Force within the
U.S. Securities and Exchange Commission. In coordination and
consultation with State securities administrators, self-regulatory
organizations, Federal law enforcement agencies, and others, the task
force would be charged with identifying issues related to investors who
are older than 65 years of age. The bill would also require biennial
task force reports and require the GAO to complete a study on senior
financial exploitation.
I strongly support the safety of America's senior investors and their
right to enjoy the retirement funds that they have worked so hard to
earn. I also support regulators and law enforcement in holding
fraudsters who prey upon the elderly accountable.
It is for all these reasons I urge my colleagues to join me in
supporting the Senior Security Act of 2021.
Madam Speaker, I reserve the balance of my time.
Mr. McHENRY. Madam Speaker, I yield myself such time as I may
consume.
Madam Speaker, I rise in support of H.R. 1565, the Senior Security
Act.
[[Page H1912]]
I would like to thank my colleagues, Mr. Hollingsworth of Indiana and
Mr. Gottheimer of New Jersey for their work on this important piece of
bipartisan legislation that will strengthen current efforts to protect
senior investors.
Madam Speaker, American capital markets provide every mom-and-pop
investor with the opportunity to realize the American Dream. Our
capital markets allow individuals and families to grow their nest egg
for retirement, their children to have an opportunity for college
tuition, or to save and purchase a home.
Moreover, as Americans age, they are an important part of the success
and vibrancy of the U.S. capital markets. In fact, Americans over the
age of 50 already account for roughly 77 percent of financial assets in
the United States. To that end, fraud and exploitation of any kind in
our capital markets threatens the integrity of our markets and harm
investors seeking to build their nest eggs.
It is especially problematic when the fraud targets senior investors.
Protecting senior investors and preventing such predatory behavior
within our financial markets is a goal that we all share, regardless of
party. This bill will support the Securities and Exchange Commission's
current efforts to protect against increasing instances of financial
exploitation against senior investors.
H.R. 1565 creates an interdivisional task force at the Securities and
Exchange Commission to examine and identify challenges faced by senior
investors.
We already have some data on senior citizens who are targeted by
financial exploitation. These statistics are alarming. Older Americans
lose up to $36 billion each year to financial scams and abuse. One in
five seniors have reported being victims of exploitation, and only a
small number of cases of financial abuse are even reported. The rates
of exploitation are only rising. In fact, The New England Journal of
Medicine calls elder financial exploitation a virtual epidemic.
There are concerns that the COVID-19 pandemic has only exacerbated
the trend. In addition to Congress, many States are already taking
action, and that is a good thing.
This bipartisan bill is an important step for the Federal Government.
The bill requires the SEC to identify current issues and challenges
facing senior investors and to make policy recommendations for
addressing these issues harming senior investors.
Madam Speaker, protecting senior investors and safeguarding the
integrity of our financial markets are objectives I believe we can get
behind. In our duty to protect our constituents, especially those most
vulnerable who contribute so much to society, we need to be helpful and
supportive. For that reason, I urge my colleagues to support this bill,
and I reserve the balance of my time.
{time} 1600
Ms. PRESSLEY. Madam Speaker, I yield 3 minutes to the gentleman from
New Jersey (Mr. Gottheimer), who is a sponsor of this legislation.
Mr. GOTTHEIMER. Madam Speaker, I am honored to rise in support of the
bipartisan Senior Security Act, which will help protect vulnerable
seniors from hucksters and scam artists. I would like to thank my good
friend, Congressman Trey Hollingsworth, for working with me on this
crucial bill, and also Senators Susan Collins and Kyrsten Sinema, who
have introduced companion legislation in the Senate.
Since I took office, I have been committed to helping seniors save
their hard-earned money for retirement, helping them cut their taxes
and afford prescription drugs, and protecting Social Security and
Medicare so that, at the end of the day, they can afford to stay in
northern New Jersey and enjoy their lives with their friends, children,
and grandchildren.
Unfortunately, far too many of our seniors have had their hard-earned
retirement savings stolen right out from under them when a scammer
calls or shows up at their door. There are millions of seniors across
the country who have been the victims of financial scams and abuses. It
is appalling; it is offensive; and it is unacceptable.
Older Americans lose approximately $3 billion each year to financial
scams and abuse. Approximately 7 million Americans have been victims of
exploitation, and that is only what is being reported. Only 1 in every
24 cases of elder abuse actually gets reported.
IRS impersonation calls and fraudulent tech support calls are among
the most widely used and costly scams targeting older Americans. In
fact, more than 2.5 million Americans have been targeted by scammers
impersonating IRS officials, costing more than 15,800 taxpayers at
least $80 million since 2013. More than 3 million Americans are victims
of tech support scams or scammers pretending to be with a reputable
tech company who persuade seniors to provide personal bank account
information.
My mom was even a victim of one of these scammers. Someone claiming
to be an IRS agent threatened her. I remember she called me and thought
that I had messed up her tax return, but it was a scammer.
COVID scammers are also now targeting older Americans with promises
of quicker access to vaccines or pandemic relief benefits, preying on
those whose only wish is to hug their family members again.
We are here today to do something about it by voting on the Senior
Security Act to help protect American seniors from scams. My bipartisan
bill creates a new senior investor task force at the SEC to fight back
against these hucksters scamming our seniors. The task force will also
identify challenges that senior investors encounter and areas within
the SEC or self-regulatory organizations where senior investors would
benefit from changes.
The task force will also coordinate with other Federal regulators,
State regulators, and law enforcement to ensure that we are doing as
much as we can at every level of government to stop this. Our
legislation will also make antifraud enforcement even more common by
giving law enforcement stronger tools and information via the new
senior investor task force.
The task force will submit regular reports to Congress, outlining
trends that are impacting senior investors. This will be a cop on the
beat to make sure we keep up with the changes in financial scams and to
be ahead of new issues as they arise.
Our seniors have given us so much. We should always have their backs
and help protect them from predators who want to take advantage of them
during their twilight years. I urge my colleagues to support this
commonsense, bipartisan bill.
Mr. McHENRY. Mr. Speaker, I yield such time as he may consume to the
gentleman from Indiana (Mr. Hollingsworth), the coauthor of this bill.
Mr. HOLLINGSWORTH. Mr. Speaker, I rise in support of this
legislation.
As I travel the district and travel across the State, I constantly
get asked two very important questions: What is Washington doing for
Americans? And, what is happening on a bipartisan basis in Washington,
D.C.?
When I travel back home this Thursday, I will be able to answer that
this legislation checks both of those boxes. I am deeply proud to work
with my good friend, Mr. Gottheimer, on this important legislation to
keep our senior citizens safe from fraudsters and hucksters who are
constantly pursuing them.
Much has been spoken already in this Chamber about the ``what'' of
this bill, but I wanted to emphasize the ``why.''
It is for the 74-year-old Hoosier walking through our Jeffersonville
office who has lost her life savings because she thought she was
interfacing with the IRS.
It is for the senior couple walking through our Franklin doors
thinking they were helping get their grandson out of jail but, instead,
were dealing with a huckster.
It is for all the senior citizens across this country who are
constantly getting the calls, constantly getting the phishing emails,
constantly seeing text messages trying to get at their life savings.
Those are the ones who report it. As Mr. Gottheimer said, only 1 in 24
of these crimes gets reported.
This is something we have to end. We have to get one step ahead. I
can't wait to travel back home to the Hoosier State later this week and
tell them this Chamber advanced a piece of legislation to protect our
senior citizens, to protect Americans, and to get us one step ahead of
those fraudsters.
Ms. PRESSLEY. Mr. Speaker, I yield 2 minutes to the gentleman from
Texas (Mr. Vicente Gonzalez).
[[Page H1913]]
Mr. VICENTE GONZALEZ of Texas. Mr. Speaker, I rise today in support
of H.R. 1565, the Senior Security Act.
This commonsense legislation will provide much-needed information for
policymakers and regulators to fine-tune protections for elderly
investors.
In south Texas, where we share the deep value of respect for our
elders, we say society is judged on how we care for our parents, our
grandparents, and beyond. We all know how closely financial health is
tied to overall well-being. I am proud to support this legislation that
equips us to identify better ways to protect our senior citizens and
for them to protect themselves from fraud and scammers.
This Senior Security Act aims to protect our seniors and prevent
these attacks from happening. This legislation will build upon the
Senior Safe Act by creating an interdivisional task force at the
Securities and Exchange Commission to examine and identify challenges
facing seniors and investors.
Within 2 years of enactment, the U.S. Government Accountability
Office must study and report the economic costs of the financial
exploitation of our seniors. Let's be clear: Scammers will stop at
nothing to take advantage of our seniors, and it is up to us in this
House to stop them.
Mr. Speaker, I encourage my congressional colleagues to join me in
supporting this important piece of legislation, and I urge its passage.
Mr. McHENRY. Mr. Speaker, I have no further speakers, and I yield
back the balance of my time.
Ms. PRESSLEY. Mr. Speaker, I yield myself the balance of my time.
Mr. Speaker, H.R. 1565 will help our financial regulators better
protect our Nation's seniors and the retirement funds they spent their
entire lives building. I urge all of my colleagues to stand up for
senior investors and vote ``yes'' on H.R. 1865.
Mr. Speaker, I yield back the balance of my time.
Ms. JACKSON LEE. Mr. Speaker, I rise in strong support of H.R. 1565,
the ``Senior Security Act,'' which will help stop financial predators
from scamming seniors out of their savings by creating a federal Senior
Investor Taskforce within the Securities and Exchange Commission (SEC)
to strengthen protections and safeguards for senior investors.
This legislation will establish the Senior Investor Taskforce at the
SEC, which will be charged with identifying problems senior investors
encounter, including financial exploitation and cognitive decline, as
well as identifying regulatory changes that could help senior
investors.
The established Senior Investor Taskforce will be required to:
Identify challenges that senior investors encounter, including
problems associated with financial exploitation and cognitive decline;
Identify areas in which senior investors would benefit from changes
at the Commission or the rules of self-regulatory organizations;
Coordinate, as appropriate, with other offices within the Commission
and other taskforces that may be established within the Commission,
self-regulatory organizations, and the Elder Justice Coordinating
Council;
Consult, as appropriate, with state securities and law enforcement
authorities, state insurance regulators, and other federal agencies;
and
Submit a biennial report to Congress.
Every day, and far too often, vulnerable seniors in Texas and across
the country fall victim to financial scammers.
Seniors have worked their entire lives with the promise of a safe and
secure retirement, but unfortunately criminals are taking advantage of
uncertainty surrounding the pandemic and working overtime to target
them.
No senior should ever have to worry that picking up the phone could
mean being scammed out of thousands of dollars, but unfortunately, for
too many members of our communities, that is exactly what is happening.
Retirement accounts are not the only damage these scams target--they
damage the independence and trust of a vulnerable community.
During the COVID-19 pandemic, we have seen instances of fraud rise in
unprecedented numbers, as scammers attempt to take advantage of senior
citizens and deprive them of their hard-earned savings.
Bad actors preying on older Americans is, unfortunately, nothing new,
but in the midst of a global pandemic impacting Americans' lives and
livelihoods, cracking down on those scams must be a priority.
One such scam was thwarted by Houston police and the Harris County
District Attorney, who made an arrest in February in an international
cyber-scam that bilked unsuspecting, mostly elderly victims out of more
than $1 million.
According to a report from the Senate Special Committee on Aging
released last Congress, older Americans lose approximately $3 billion
each year to financial scams and abuse.
Although 1 in 20 seniors in the U.S. is a target of fraud schemes,
the National Adult Protective Services Association has found that only
1 in 44 seniors report-that they are victims of a fraud scheme.
Fraudulent IRS impersonation and tech support calls are among the
common and costly scams, and according to the Treasury Inspector
General for Tax Administration, more than 2.5 million Americans have
been targeted by scammers impersonating IRS officials.
Since 2013, more than 15,800 taxpayers have lost at least $80 million
from this type of scam alone.
Furthermore, Microsoft estimates that more than 3 million Americans
are victims of technical support scams, where scammers pretend to be
with a reputable tech company and persuade seniors to provide personal
and bank information.
Although we do know a few statistics, the lack of good, recent data
on senior financial exploitation is a problem that H.R. 1565 would
significantly aid in resolving.
For this reason, I urge all members to join me in voting to pass H.R.
1565, the Fraud and Scam Reduction Act, which is critical to protecting
seniors' hard-earned savings and stopping fraudulent schemes before it
is too late.
The SPEAKER pro tempore (Mr. Takano). The question is on the motion
offered by the gentlewoman from Massachusetts (Ms. Pressley) that the
House suspend the rules and pass the bill, H.R. 1565.
The question was taken.
The SPEAKER pro tempore. In the opinion of the Chair, two-thirds
being in the affirmative, the ayes have it.
Mr. BIGGS. Mr. Speaker, on that I demand the yeas and nays.
The SPEAKER pro tempore. Pursuant to section 3(s) of House Resolution
8, the yeas and nays are ordered.
Pursuant to clause 8 of rule XX, further proceedings on this motion
are postponed.
____________________