Financial Exploitation Prevention Act of 2025

S. 2840 would amend federal investment law to give financial institutions new tools to combat financial exploitation of vulnerable people. The bill would allow registered investment companies and transfer agents to temporarily delay redemption requests for mutual funds and similar securities if they reasonably believe the request stems from financial exploitation of someone age 65 or older, or anyone age 18 or older with a mental or physical impairment that prevents them from protecting their own interests. The initial delay could last up to 15 business days, with potential extensions. Additionally, the bill would require the Securities and Exchange Commission to study and report to Congress on recommendations for additional legislative and regulatory protections against financial exploitation of seniors and vulnerable adults. If enacted, the bill could help prevent scammers from quickly draining investment accounts while giving families and authorities time to intervene in suspected fraud cases.