Agent: means any individual, other than a broker-dealer, who represents a broker-dealer in effecting or attempting to effect purchases or sales of securities from, in, or into this state. See Tennessee Code 48-1-102
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 any person engaged in the business of effecting transactions in securities for the account of others, or any person engaged in the business of buying or selling securities issued by one (1) or more other persons for such person's own account and as part of a regular business rather than in connection with such person's investment activities. See Tennessee Code 48-1-102
Business: includes every trade, occupation, profession, investment activity and other lawful purpose for gain or the preservation of assets whether or not carried on for profits. See Tennessee Code 48-202-101
Court: includes every court and judge having jurisdiction in the case. See Tennessee Code 48-202-101
Designated adult: means :(A) An individual sixty-five (65) years of age or older. See Tennessee Code 48-1-102
Financial exploitation: means :(A) The wrongful or unauthorized taking, withholding, appropriation, or use of money, assets, or property of a designated adult. See Tennessee Code 48-1-102
Guardian: A person legally empowered and charged with the duty of taking care of and managing the property of another person who because of age, intellect, or health, is incapable of managing his (her) own affairs.
Individual: includes the estate of an incompetent or deceased individual. See Tennessee Code 48-11-201
Investment adviser: includes a financial planner or other person who, as an integral component of other financially related services, provides investment advice to others for compensation as part of a business or who holds oneself out as providing investment advice to others for compensation. See Tennessee Code 48-1-102
Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
Person: means a natural person, a sole proprietorship, a corporation, a partnership, an association, a limited liability company, a joint-stock company, a trust, a governmental entity or agency, or any other unincorporated organization. See Tennessee Code 48-1-102
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
Qualified individual: means any agent, investment adviser representative, or person who serves in a supervisory, compliance, or legal capacity for a broker-dealer or investment adviser. See Tennessee Code 48-1-102
Trustee: A person or institution holding and administering property in trust.
(1) If a qualified individual reasonably believes that financial exploitation of a designated adult has occurred, has been attempted or may have been attempted, or is being attempted, the qualified individual, in cooperation with the qualified individual’s broker-dealer or investment adviser, may notify the commissioner.(2) Subsequent to notifying the commissioner, a qualified individual may, to the extent permitted under federal law, notify any of the following concerning the qualified individual’s belief that financial exploitation may have occurred:
(A) A relative of the designated adult as defined in § 71-6-102;(B) A legal guardian of the designated adult;(C) A trustee, co-trustee, or successor trustee of the account of the designated adult;(D) An agent under a power of attorney of the designated adult; or(E) Any other person permitted under existing laws, rules, regulations, or customer agreement.(b)(1) A broker-dealer or investment adviser may delay a disbursement from an account of a designated adult or an account on which a designated adult is a beneficiary if:
(A) The broker-dealer, investment adviser, or qualified individual reasonably believes, after initiating an internal review of the requested disbursement and the suspected financial exploitation, that the requested disbursement may result in financial exploitation of a designated adult; and(B) The broker-dealer or investment adviser:
(i) Immediately, but in no event more than two (2) business days after the requested disbursement, provides written notification of the delay and the reason for the delay to all parties authorized to transact business on the account, unless any such party is reasonably believed to have engaged in or attempted financial exploitation of the designated adult;(ii) Immediately, but in no event more than two (2) business days after the requested disbursement, notifies the commissioner; and(iii) Continues its internal review of the suspected or attempted financial exploitation of the designated adult, as necessary, and reports any additional results to the commissioner within seven (7) business days after the requested disbursement.(2) The commissioner is authorized to establish additional disbursement-delay guidelines by rules promulgated in accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5.(3) Any delay of a disbursement as authorized by this section shall expire upon the sooner of:
(A) A determination by the broker-dealer or investment adviser that the disbursement will not result in financial exploitation of the designated adult; or(B) Fifteen (15) business days after the date on which the broker-dealer or investment adviser first delayed disbursement of the funds, unless the commissioner requests that the broker-dealer or investment adviser extends the delay, in which case the delay shall expire no more than twenty-five (25) business days after the date on which the broker-dealer or investment adviser first delayed disbursement of the funds unless otherwise terminated or extended by the commissioner or an order of a court of competent jurisdiction.(4) A court of competent jurisdiction may enter an order extending the delay of the disbursement of funds or an order granting other protective relief based on the petition of the commissioner, the broker-dealer or investment adviser that initiated the delay under this section, or any other interested party.(c) A broker-dealer, investment adviser, or qualified individual that, in good faith and exercising reasonable care, complies with subsections (a) and (b) is immune from liability for such conduct.(d) A broker-dealer or investment adviser shall provide access to or copies of records that are relevant to the suspected financial exploitation of a designated adult to the commissioner. The records may include historical records or records relating to the most recent disbursement as well as disbursements that comprise the suspected financial exploitation of a designated adult. All records made available to the commissioner under this section shall not be open to inspection by members of the public under § 10-7-503.
