A broker-dealer or an investment adviser may delay a disbursement or transaction from an eligible adult‘s account or from an account on which the eligible adult is a beneficiary, if the broker-dealer or investment adviser:
Terms Used In Utah Code 61-1-204
Adult Protective Services: means the same as that term is defined in Section 26B-6-201. See Utah Code 61-1-201
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 account of others or for the person's own account. See Utah Code 61-1-13
Division: means the Division of Securities established by Section 61-1-18. See Utah Code 61-1-13
Financial exploitation of an eligible adult: means :
(a)
the wrongful or unauthorized taking, withholding, appropriation, or use of money, assets, or other property of an eligible adult; or
(b)
an act or omission, including through a power of attorney, guardianship, or conservatorship of an eligible adult, to:
(i)
obtain control, through deception, intimidation, or undue influence, over an eligible adult's money, assets, or other property to deprive the eligible adult of the ownership, use, benefit, or possession of the eligible adult's money, assets, or other property; or
(ii)
convert an eligible adult's money, assets, or other property to deprive the eligible adult of the ownership, use, benefit, or possession of the eligible adult's money, assets, or other property. See Utah Code 61-1-201
Investment adviser: includes a financial planner or other person who:
(A)
as an integral component of other financially related services, provides the investment advisory services described in Subsection (1)(q)(i) to others as part of a business;
(B)
holds the person out as providing the investment advisory services described in Subsection (1)(q)(i) to others; or
(C)
holds the person out as a financial adviser, financial consultant, or any other similar title as the division may specify in rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, in any way as to imply that the person is generally engaged in an investment advisory business, including a person who does not hold a securities license and uses a title described in this Subsection (1)(q)(ii)(C) in any advertising or marketing material. See Utah Code 61-1-13
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 :
(i)
an individual;
(ii)
a corporation;
(iii)
a partnership;
(iv)
a limited liability company;
(v)
an association;
(vi)
a joint-stock company;
(vii)
a joint venture;
(viii)
a trust where the interests of the beneficiaries are evidenced by a security;
suspects that the disbursement or transaction may result in the financial exploitation of an eligible adult;
(b)
initiates an internal review of the disbursement or transaction and the suspected financial exploitation of an eligible adult;
(c)
after initiating the internal review, reasonably believes that the disbursement or transaction may result in the financial exploitation of an eligible adult;
(d)
within two business days after the day on which the disbursement or transaction is delayed, provides written notification of the delay and the reason for the delay to:
(i)
each party authorized to transact business on the account, unless the party is reasonably believed to have engaged in suspected or attempted financial exploitation of the eligible adult;
(ii)
the division; and
(iii)
Adult Protective Services;
(e)
continues the broker-dealer’s or investment adviser’s internal review of the suspected or attempted financial exploitation of the eligible adult, as necessary; and
(f)
upon request, provides a timely report on the status and results of the internal review to the division or Adult Protective Services.
(2)
Except as provided in Subsection (3), a delay of a disbursement or transaction under Subsection (1) expires the earlier of:
(a)
the day on which the broker-dealer or investment adviser determines that the disbursement or transaction will not result in the financial exploitation of an eligible adult; or
(b)
15 business days after the day on which the broker-dealer or investment adviser initially delayed the disbursement or transaction.
(3)
If an internal review described in Subsection (1) supports a reasonable belief that a person has engaged in or attempted to engage in the financial exploitation of an eligible adult, the division or Adult Protective Services may extend the delay of the disbursement or transaction under Subsection (1) as reasonably necessary.
(4)
A court of competent jurisdiction may enter an order terminating or extending a delay under this section or granting other protective relief.
