(Radio Iowa) – Iowa legislators are working on a bill to address the exploitation of adults who cannot take care of their own financial affairs due to their age or a disability. Chance McElhaney  of the Iowa Insurance Division, says “Financial exploitation of adults has grown more sophisticated.” He says the bill is patterned after laws in 27 other states. “At the heart of the bill, it allows a broker-dealer or an investment advisor, when they see something, to be able to say something,” he says.

A recent national study of elder abuse reports involving family members found 62 percent of the cases were about alleged financial abuse of an elderly relative. If the bill pending in the Iowa legislature becomes law, financial advisors would be shielded from lawsuits for reporting concerns about relatives or guardians to state officials. The bill also outlines under what conditions a financial transaction may be delayed if an investment advisor suspects it’s not in the best interests of the dependent adult.

Senator Craig Johnson, a Republican from Independence, has worked as an investment representative. “My past experience working in the industry for seven-and-a-half years, I think this bill should be very well received,” Johnson says, “and I’m interested to move it forward.”

House and Senate committees are considering adjustments to the bill, but no legislator has raised objections to the concept.