(a) If a broker-dealer, investment adviser, or qualified individual reasonably believes that the financial exploitation of a covered adult may have occurred, may have been attempted, or is being attempted, the broker-dealer, investment adviser, or qualified individual shall notify adult protective services and the administrator not later than five days after the broker-dealer, investment adviser, or qualified individual develops the reasonable belief that the financial exploitation or attempted financial exploitation has or may have occurred, or is being attempted, except that the broker-dealer, investment adviser, or qualified individual shall notify adult protective services and the administrator immediately upon confirmation of the financial exploitation or attempted financial exploitation of the covered adult.
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Terms Used In Alaska Statutes 45.56.430

  • administrator: means the commissioner of commerce, community, and economic development or a designee of the commissioner. See Alaska Statutes 45.56.900
  • agent: means an individual, other than a broker-dealer, who represents a broker-dealer in effecting or attempting to effect purchases or sales of securities or represents an issuer in effecting or attempting to effect purchases or sales of the issuer's securities. See Alaska Statutes 45.56.900
  • Appropriation: The provision of funds, through an annual appropriations act or a permanent law, for federal agencies to make payments out of the Treasury for specified purposes. The formal federal spending process consists of two sequential steps: authorization
  • Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
  • Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
  • broker-dealer: means a person engaged in the business of effecting transactions in securities for the accounts of others or for the person's own account. See Alaska Statutes 45.56.900
  • investment adviser: includes a financial planner or other person that, as an integral component of other financially related services, provides investment advice to others for compensation as part of a business or that holds itself out as providing investment advice to others for compensation. See Alaska Statutes 45.56.900
  • investment adviser representative: means an individual employed by or associated with an investment adviser or federal covered investment adviser and who makes any recommendations or otherwise gives investment advice regarding securities, manages accounts or portfolios of clients, determines which recommendation or advice regarding securities should be given, provides investment advice or offers to provide investment advice, receives compensation to solicit, offer, or negotiate for the sale of or for selling investment advice, or supervises employees who perform any of the foregoing. See Alaska Statutes 45.56.900
  • person: means an individual, a corporation, a partnership, a limited liability company, a limited partnership, a limited liability partnership, an association, a joint-stock company, a trust in which the interests of the beneficiaries are evidenced by a security, an unincorporated organization, a government, or a political subdivision of a government. See Alaska Statutes 45.56.900
  • Power of attorney: A written instrument which authorizes one person to act as another's agent or attorney. The power of attorney may be for a definite, specific act, or it may be general in nature. The terms of the written power of attorney may specify when it will expire. If not, the power of attorney usually expires when the person granting it dies. Source: OCC
  • property: includes real and personal property. See Alaska Statutes 01.10.060
  • self-regulatory organization: means a national securities exchange registered under 15 U. See Alaska Statutes 45.56.900
  • state: means a state of the United States, the District of Columbia, Puerto Rico, the United States Virgin Islands, or any territory or insular possession subject to the jurisdiction of the United States. See Alaska Statutes 45.56.900
  • vulnerable adult: has the meaning given in Alaska Stat. See Alaska Statutes 45.56.900
(b) The requirements of (a) of this section may not be construed to require more than one notification for each occurrence of exploitation or attempted exploitation.
(c) If a broker-dealer, investment adviser, or qualified individual reasonably believes that financial exploitation of a covered adult may have occurred, may have been attempted, or is being attempted, a broker-dealer, investment adviser, or qualified individual may notify a person whom the covered adult previously designated to be notified about financial matters of the covered adult, as well as any other person allowed under state or federal law or regulation, or the rules of a self-regulatory organization, except that the broker-dealer, investment adviser, or qualified individual may not notify a person that is suspected of engaging in financial exploitation or other abuse of the covered adult.
(d) A broker-dealer or investment adviser may delay a disbursement from an account of a covered adult or from an account on which a covered adult is a beneficiary if

(1) the broker-dealer, investment adviser, or qualified individual reasonably believes, after initiating an internal review of the requested disbursement and the suspected financial exploitation of a covered adult, that the requested disbursement may result in financial exploitation of the covered adult; and
(2) the broker-dealer or investment adviser

(A) within two business days after receiving the request for disbursement, provides written notification of the delay and the reason for the delay to all persons authorized to transact business on the account, except to a person that the broker-dealer, investment adviser, or qualified individual reasonably believes has engaged in suspected or attempted financial exploitation of the covered adult;
(B) within two business days after receiving the request for disbursement, notifies adult protective services and the administrator; and
(C) continues as necessary an internal review of the suspected or attempted financial exploitation of the covered adult and, within seven business days after receiving the request for disbursement, reports the status of the investigation to adult protective services and the administrator, and provides additional status updates to the administrator and adult protective services upon request.
(e) A disbursement delay under (d) of this section expires when the earlier of the following events occurs:

(1) the broker-dealer or investment adviser determines that the disbursement will not result in financial exploitation of the covered adult;
(2) 15 business days after the date on which the broker-dealer or investment adviser first delayed the disbursement, unless

(A) adult protective services or the administrator requests that the broker-dealer or investment adviser extend the delay, in which case the delay expires 25 business days after the date on which the broker-dealer or investment adviser first delayed disbursement; or
(B) adult protective services, the administrator, or the superior court terminates the delay.
(f) Adult protective services, the administrator, the broker-dealer or investment adviser that initiated the delay under (d) or (e) of this section, or another interested person may petition the superior court for an order extending a disbursement delay or providing other relief to a covered adult, and the superior court may enter an order providing the requested relief.
(g) A broker-dealer or investment adviser shall provide access to or copies of records that are relevant to the suspected or attempted financial exploitation of a covered adult to adult protective services and to state law enforcement agencies as part of a referral to adult protective services or an investigation. The records that may be accessed or copied under this subsection include records relating to past transactions that may have involved financial exploitation of the covered adult as well as records relating to the most recent transaction that may involve financial exploitation of the covered adult. Records made available to agencies under this subsection are not public records as defined in Alaska Stat. § 40.25.100 – 40.25.295″ class=”unlinked-ref” datatype=”S” sessionyear=”2023″ statecd=”AK”>Alaska Stat. § 40.25.220. This subsection does not limit or impede the authority of the administrator to access or examine the books and records of broker-dealers and investment advisers as otherwise provided by law.
(h) A broker-dealer, investment adviser, or qualified individual acting in good faith and exercising reasonable care under (a) – (g) of this section is immune from administrative or civil liability for a notification, disclosure, disbursement delay, or record sharing under (a) – (g) of this section.
(i) The following constitute the financial exploitation of a covered adult under this section:

(1) the wrongful or unauthorized taking, withholding, appropriation, or use of the money, assets, or other property of a covered adult; or
(2) an act or omission of a person, including an act or omission made through the use of a power of attorney, guardianship, or conservatorship of a covered adult, to

(A) obtain control, through deception, intimidation, or undue influence, over the covered adult’s money, assets, or other property to deprive the covered adult of the ownership, use, benefit, or possession of the covered adult’s money, assets, or other property; or
(B) convert the ownership, use, benefit, or possession of the covered adult’s money, assets, or other property to another person.
(j) In this section,

(1) “adult protective services” means the agency that has the responsibility for providing protective services for adults; in this paragraph,

(A) “agency” has the meaning given in Alaska Stat. § 44.64.200;
(B) “protective services” has the meaning given in Alaska Stat. § 47.24.900;
(2) “covered adult” means a natural person who is

(A) 60 years of age or older; or
(B) a vulnerable adult;
(3) “qualified individual” means an agent, investment adviser representative, or other person who is acting in a supervisory, compliance, or legal capacity for a broker-dealer or investment adviser.
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