Last week Missouri Secretary of State Robin Carnahan released the findings of her office’s statewide examination of the practices used by Missouri’s broker-dealer and investment adviser firms to protect their senior clients.
Specific audit findings for individual firms are not public, but statewide trends suggest more should be done to address the unique investment challenges faced by aging clients. Most Missouri firms lack specific policies to address the unique challenges of working with seniors, such as identifying unsuitable investment products and coping with cognitive decline or dementia, which affect more than half of all seniors more than 80 years old.
The report identifies practices that firms should consider to better serve seniors, such as:
(1) adopting a definition of “elderly” person that is practical and client specific;
(2) identifying certain investments (e.g., variable annuities), that trigger a heightened review by management when sold to a senior investor;
(3) prohibiting agents from targeting seniors in their advertising; and
(4) ensuring that account information for seniors is regularly reviewed and updated – in person.
Investors may call the toll-free Investor Protection Hotline at 1-800-721-7996 to learn the history of any company or representative and ensure they are properly registered as required by law.