LPL Supports Adoption of SC Law Protecting Senior Investors

Last Edited by: LPL Financial

Last Updated: July 06, 2021

Financial building sign in San Diego, CA

CHARLOTTE, N.C. – July 6, 2021- LPL Financial LLC announced today that South Carolina Governor Henry McMaster has signed into law a bill LPL supported as the primary proponent. The new statute gives financial service firms and securities regulators in the state of South Carolina new tools to detect and prevent the financial exploitation of vulnerable adults. LPL worked closely with South Carolina Attorney General Alan Wilson to see the bill enacted.

In the United States alone, the annual loss by elderly victims of financial abuse is estimated to be $36.5 billion. The vulnerable adult and senior investor protection is designed to protect senior citizens who may be experiencing physical or mental declines that can impact their ability to safeguard their own finances.

The South Carolina General Assembly voted overwhelmingly to approve the bill, which was the culmination of an extensive effort by state legislators to protect elderly and vulnerable adults from financial exploitation. In particular, LPL is grateful for the support of Senator Thomas Alexander (R-Oconee), Senator Katrina Shealy (R-Lexington), Senator Tom Young (R-Aiken), and Representative Bill Sandifer (R-Oconee).

Why this LPL-supported bill is important

“State regulators and local authorities are on the front line of dealing with fraud and exploitation, and often the first place that investors or their families turn to for help,” said John Cronin, LPL Financial vice president and head of state government relations. “With this legislation, South Carolina joins a growing list of states creating additional layers of protection for its most vulnerable residents. We are proud to play a role championing this effort in a state that LPL calls home.”

The legislation extends the impact of the North America Securities Administrators Association’s (NASAA) “Model Act to Protect Vulnerable Adults from Financial Exploitation (Model Act),” which was approved by NASAA’s membership in 2016. The Model Act provides a template for legislation that each state can adopt to protect senior investors and vulnerable adults from financial exploitation. It provides for mandatory reporting to regulatory agencies and allows firms and advisors to enlist the assistance of state securities regulators to review any red flags. To date, the Model Act has been enacted in 32 jurisdictions.

To learn more about LPL’s Government Relations team and its advocacy, please reach out to [email protected].


About LPL Financial:

LPL Financial (Nasdaq: LPLA) was founded on the principle that the firm should work for the advisor, and not the other way around. Today, LPL is a leader* in the markets we serve, supporting more than 18,000 financial advisors, 800 institution-based investment programs and 450 independent RIA firms nationwide. We are steadfast in our commitment to the advisor-centered model and the belief that Americans deserve access to objective guidance from a financial advisor. At LPL, independence means that advisors have the freedom they deserve to choose the business model, services, and technology resources that allow them to run their perfect practice. And they have the freedom to manage their client relationships, because they know their clients best. Simply put, we take care of our advisors, so they can take care of their clients.

* Top RIA custodian (Cerulli Associates, 2019 U.S. RIA Marketplace Report); No. 1 Independent Broker-Dealer in the U.S (Based on total revenues, Financial Planning magazine June 1996-2020); No. 1 provider of third-party brokerage services to banks and credit unions (2020-2021 Kehrer Bielan Research & Consulting Annual TPM Report); Fortune 500 as of June 2021

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