On June 30, 2020, Florida’s Governor signed Florida House Bill 813, amending Florida Statute 415.1034 and creating Florida Statute 517.34. This Bill was drafted to protect vulnerable investors within the State of Florida from financial exploitation. The Bill requires broker-dealers, investment advisers and associated persons to report knowledge or suspicion of abuse, neglect, or exploitation of vulnerable adults to the Department of Children and Families and the Office of Financial Regulation.
Additionally, the Bill permits broker-dealers and investment advisers to delay disbursements or transactions based on a reasonable belief of financial exploitation. The Bill requires the broker-dealer or investment adviser to place the Office of Financial Regulation (“OFR”) on notice within 3 business days after the delay was first placed on the transaction, and provide OFR with specific information regarding the customer, transaction and suspected abuse.
These rule changes provide immunity from administrative and civil liability for broker-dealers, investment advisers, and associated persons should they follow the protocols set forth within the rules. Additionally, the rules require broker-dealers and investment advisers to implement training and written supervisory procedures to comply with these rules.
Below please find a link to the amendments to Florida Statute 415.1034 and Florida Statute 517.34 which went go into effect on July 1, 2020:
Should you have any questions regarding Fla. Statute 415.1034, Fla. Statute 517.34, or the new training policies and procedures required to be implemented, please contact one of the following partners at Winget Spadafora & Schwartzberg, LLP who are leading the firm’s effort in the defense of broker-dealers, financial advisors and investment advisers across the United States.
45 Broadway, 32nd Floor
New York, NY 10006
Benjamin J. Biard
14 NE 1st Ave
Miami, FL 33132
1528 Walnut Street
Philadelphia, PA 19102
2440 Junction Place
Boulder, CO 80301