Okla. Admin. Code § 660:11-15-2

Current through Vol. 41, No. 19, June 17, 2024

Section 660:11-15-2 - Protection from financial exploitation

(a)Definitions. The following words and terms, when used in this Section shall have the following meanings, unless the context clearly indicates otherwise:

(1)"Account" means any account of a broker-dealer or investment adviser for which a Protected Adult has the authority to transact business.

(2)"Agencies" means the one or more of the following: the Oklahoma Department of Human Services, the office of the district attorney in the county in which the suspected exploitation occurred, or the local municipal police or sheriff's department.

(3)"Financial exploitation" means:

(A) the wrongful or unauthorized taking, withholding, appropriation or use of money, assets, or property of a protected adult; or

(B) any act or omission taken by a person, including through the use of a power of attorney, guardianship, conservatorship or any other authority, regarding a protected adult, to:

(i) obtain control, though the use of intimidation, undue influence, coercion, harassment, duress, deception, false representation or false pretense, over the protected adult's money, assets or property; or

(ii) convert money, assets, or property of the protected adult.

(4)"Protected adult" means

(A) an individual 62 years of age or older; or

(B) an incapacitated person or a vulnerable adult as such terms are defined in the Protective Services for Vulnerable Adults Act in Title 43A of the Oklahoma Statutes.

(b)Agency disclosure. As required by the Protective Services for Vulnerable Adults Act in Title 43A of the Oklahoma Statutes, if a broker-dealer or investment adviser reasonably believes that financial exploitation of a protected adult in this state has occurred, is occurring, may have been attempted, is being attempted, or will be attempted, the broker-dealer or investment adviser shall promptly notify one or more of the Agencies.

(c)Third-party disclosures. If a broker-dealer or investment adviser reasonably believes that financial exploitation relating to a protected adult has occurred, is occurring, may have been attempted, is being attempted, or will be attempted, in and/or from this state, the broker-dealer or investment adviser may notify any third-party previously designated by the protected adult or any other third party that is reasonably associated with the protected adult.

(d)Temporary holds.

(1) A broker-dealer or investment adviser transacting business in and/or from this state with a protected adult may place a temporary hold on a transaction in and/or a disbursement of funds or securities from an account of such protected adult or an account on which such protected adult is a beneficiary if:

(A) the broker-dealer or investment adviser reasonably believes that financial exploitation of a protected adult has occurred, is occurring, has been attempted, or will be attempted; and

(B) the broker-dealer or investment adviser:

(i) immediately, but in to event more than two business days after the date the temporary hold is first placed provides oral or written notification, which may be electronic, of the temporary hold and the reason therefor to all parties authorized to transact business in the account; any third party previously designated by the protected adult to be contacted; and the Oklahoma Department of Securities; and

(ii) immediately initiates an internal review of the suspected or attempted financial exploitation of the protected adult, as necessary.

(2) Any temporary hold of a transaction or disbursement of funds or securities as authorized by this subsection will expire upon the earlier of:

(A) a determination by the broker-dealer or investment adviser that the transaction or disbursement of funds or securities will not result in financial exploitation of the protected adult; or

(B) not later than fifteen business days after the date on which the broker-dealer or investment adviser first placed the temporary hold on the transaction or disbursement of funds or securities, unless the broker-dealer or investment adviser's internal review of the facts and circumstances supports its reasonable belief that financial exploitation of the protected adult has occurred, is occurring, has been attempted, or will be attempted, in which case the broker-dealer or investment adviser may extend the temporary hold to not later than twenty-five business days after the date the broker-dealer or investment adviser first placed the temporary hold on the transaction or disbursement of the funds or securities; or

(C) at any time, an agency of competent jurisdiction or a court of competent jurisdiction may terminate or extend a temporary hold authorized by this subsection.

(e)Disclosure exceptions. Notwithstanding subsections (c) and (d) above, a notification permitted or required by this section shall not be made to any person the broker-dealer or investment adviser reasonably believes has engaged, is engaged, or will engage, in suspected or attempted financial exploitation of the protected adult.

(f)Immunity from administrative liability. A broker-dealer or investment adviser that, in good faith and exercising reasonable care, complies with this section shall be immune from any administrative liability imposed through an action by the Department that might otherwise arise from a disclosure, placing a temporary hold on a transaction or disbursement of funds or securities, or providing access to records in accordance with this section.

(g)Records. A broker-dealer or investment adviser shall retain and provide access to or copies of records that are relevant to the suspected or attempted financial exploitation of a protected adult to the Oklahoma Department of Human Services and to law enforcement, either as part of a referral to, or upon request of, the Oklahoma Department of Human Services or law enforcement. The records may include historical records as well as records relating to the most recent transaction or transactions that may comprise financial exploitation of a protected adult. Nothing in this provision shall limit or otherwise impede the authority of the Administrator of the Oklahoma Department of Securities to access or examine the books and records of broker-dealers and investment advisers as otherwise provided by law.

Okla. Admin. Code § 660:11-15-2

Adopted by Oklahoma Register, Volume 37, Issue 24, September 1, 2020, eff. 11/1/2020