Placed on the Union Calendar, Calendar No. 313.
The bill amends Section 22 of the Investment Company Act of 1940 to allow registered open-end investment companies and their transfer agents (that opt in) to collect at least one adult contact for direct-at-fund, non‑institutional accounts and to delay redemption payments beyond the normal seven days when they reasonably believe a specified adult is subject to financial exploitation. Delays may last up to 15 business days, with a possible additional 10 business day extension after an internal review and notification to the named contact, subject to exceptions where the contact may be the abuser and to extensions by state regulators or courts.
Progressives emphasize elder protection and SEC oversight benefits
Relative to its intended legislative type, this bill is a focused substantive amendment to the Investment Company Act that provides clear, specific operational mechanisms to allow covered entities to postpone redemption payments when financial exploitation of specified adults is reasonably suspected.
The bill amends Section 22 of the Investment Company Act of 1940 to allow registered open-end investment companies and their transfer agents (that opt in) to collect at least one adult contact for direct-at-fund, non‑institutional accounts and to delay redemption payments beyond the normal seven days when they reasonably believe a specified adult is subject to financial exploitation.
Delays may last up to 15 business days, with a possible additional 10 business day extension after an internal review and notification to the named contact, subject to exceptions where the contact may be the abuser and to extensions by state regulators or courts.
The bill requires internal procedures, recordkeeping, prospectus disclosure, and directs the SEC to report to Congress within one year with regulatory and legislative recommendations after consulting several financial regulators.
Substantive, narrowly targeted consumer protection with limited fiscal effects and built‑in compromises, making passage plausible though not guaranteed.
Relative to its intended legislative type, this bill is a focused substantive amendment to the Investment Company Act that provides clear, specific operational mechanisms to allow covered entities to postpone redemption payments when financial exploitation of specified adults is reasonably suspected. It couples that authority with detailed procedural, notification, and recordkeeping requirements and a one-year SEC reporting mandate.
Progressives emphasize elder protection and SEC oversight benefits
These are examples from the analysis, not a ranked list of the most-affected groups.
The clearest budget scorecard attached to this bill: what it changes for direct spending, revenue, and the deficit.
As reported by the House Committee on Financial Services on November 4, 2025
Progressives emphasize elder protection and SEC oversight benefits
Generally supportive: views the bill as a targeted, reasonable federal step to protect seniors and vulnerable adults from financial abuse.
Sees the elective framework, recordkeeping, and SEC review as useful safeguards.
Would want stronger mandatory coverage and safeguards against firms misusing delays.
Cautiously favorable: supports protecting vulnerable investors but wants clearer definitions, limited costs, and due‑process safeguards.
Views voluntary election as pragmatic but worries about inconsistent protection.
Seeks cost analysis and clarified standards for ‘‘reasonable belief.’'
Skeptical: concerned about regulatory overreach, interference with contractually defined redemptions, and the risk of freezing investors’ legally entitled funds.
Notes the bill is elective, but views new obligations and notification rules as burdensome and risky.
Reached or meaningfully advanced
Reached or meaningfully advanced
Still ahead
Still ahead
Still ahead
Substantive, narrowly targeted consumer protection with limited fiscal effects and built‑in compromises, making passage plausible though not guaranteed.
The bill has not accumulated any surfaced votes yet.
Progressives emphasize elder protection and SEC oversight benefits
Substantive, narrowly targeted consumer protection with limited fiscal effects and built‑in compromises, making passage plausible though no…
Relative to its intended legislative type, this bill is a focused substantive amendment to the Investment Company Act that provides clear, specific operational mechanisms to allow covered entities to postpone redemption…
Go beyond the headline summary with full stakeholder mapping, legislative design analysis, passage barriers, and lens-by-lens tradeoff breakdowns.