Financial Exploitation Prevention Act of 2025 postpones redemption of securities for specified adults suspected of financial exploitation.

The Financial Exploitation Prevention Act of 2025 amends the Investment Company Act of 1940 to allow registered open-end investment companies and their transfer agents to postpone redemption of securities for more than seven days if they reasonably believe financial exploitation is involved. This applies to specified adults, defined as those aged 65 or older or those under 18 with a mental or physical impairment. Companies must notify relevant individuals and initiate an internal review.

Financial Exploitation Prevention Act of 2025 postpones redemption of securities for specified adults suspected of financial exploitation.

The Financial Exploitation Prevention Act of 2025 amends the Investment Company Act of 1940 to allow registered open-end investment companies and their transfer agents to postpone redemption of securities for more than seven days if they reasonably believe financial exploitation is involved. This applies to specified adults, defined as those aged 65 or older or those under 18 with a mental or physical impairment. Companies must notify relevant individuals and initiate an internal review.