Arkansas Code
Subchapter 3 - Broker-Dealers, Agents, and Investment Advisers
§ 23-42-309. Protection of vulnerable adults from financial exploitation — Definitions

(a) As used in this section:
(1) “Agencies” means:
(A) The Adult Protective Services Unit of the Department of Human Services; and
(B) The Securities Commissioner;

(2) “Eligible adult” means a person who is:
(A) Sixty-five (65) years of age or older; or
(B) Subject to supervision by the Arkansas Adult Protective Services Unit of the Department of Human Services; and

(3) “Financial exploitation” means:
(A) The wrongful or unauthorized taking, withholding, appropriation, or use of funds, assets, or property of an eligible adult; or
(B) Any act or omission made by a person, including through the use of an eligible adult's power of attorney, guardianship, or conservatorship, to:
(i) Obtain control, through deception, intimidation, or undue influence, over the eligible adult's funds, assets, or property that results in depriving the eligible adult of rightful ownership, use, benefit, access to, or possession of his or her money, assets, or property; or
(ii) Convert funds, assets, or property of an eligible adult to deprive the eligible adult of the rightful ownership, use, benefit, access to, or possession of his or her funds, assets, or property.

(b) If an individual reasonably believes that financial exploitation of an eligible adult may have occurred, may have been attempted, or is being attempted, the individual:
(1) Should promptly disclose this information to the agencies;
(2) Who in good faith and exercising reasonable care makes a disclosure under subdivision (b)(1) of this section, shall be immune from administrative or civil liability that might otherwise arise from the disclosure or for any failure to notify the eligible adult of the disclosure; and
(3)
(A) May notify a third party previously designated by the eligible adult.
(B) Disclosure shall not be made to any designated third party that is suspected of financial exploitation or other abuse of the eligible adult.
(C) If an individual makes a disclosure under subdivision (b)(3)(A) of this section, the individual is immune from any administrative or civil liability that might otherwise arise from the disclosure.

(c)
(1) A broker-dealer or investment adviser may delay a disbursement from an account of an eligible adult or an account on which an eligible adult is a current beneficiary if:
(A) Financial exploitation is suspected;
(B) After an internal review of a requested disbursement, the broker-dealer, investment adviser, or individual reasonably believes that the requested disbursement may result in financial exploitation; and
(C) The broker-dealer or investment adviser immediately or within two (2) business days after the requested disbursement:
(i) Provides to all parties authorized to transact business on the account written notification of the delay and the reason for the delay, unless any such party is reasonably believed to have engaged in suspected or attempted financial exploitation;
(ii) Notifies the agencies; and
(iii) Continues its internal review of the suspected or attempted financial exploitation, as necessary, and reports the investigation's results to the agencies within seven (7) business days after the requested disbursement.

(2)
(A) Except as provided under subdivision (c)(2)(B) of this section, a delay of a disbursement under this section shall expire upon the earliest of:
(i) A determination by the broker-dealer or investment adviser that the disbursement will not result in financial exploitation; or
(ii) Fifteen (15) business days after the date on which the broker-dealer or investment adviser first delayed disbursement of the funds.

(B) If either of the agencies requests that the broker-dealer or investment adviser extend the delay of disbursement, the delay shall expire:
(i) No more than twenty-five (25) business days after the date on which the broker-dealer or investment adviser first delayed disbursement of the funds;
(ii) Upon the termination by the agencies of the hold on the disbursement; or
(iii) As directed by an order of a court of competent jurisdiction.

(3) A court of competent jurisdiction may enter an order extending the delay of the disbursement of funds or may order other protective relief upon application by:
(A) The agencies;
(B) The broker-dealer or investment adviser that initiated the delay of disbursement under subdivision (c)(1) of this section; or
(C) Any other interested party.

(4) If a broker-dealer or investment adviser delays a disbursement under subdivision (c)(1) of this section in good faith and exercising reasonable care and complies with this subsection, the broker-dealer or investment adviser is immune from any administrative or civil liability that might otherwise arise from the delay in a disbursement.

(d)
(1) A broker-dealer or investment adviser shall provide access to or copies of records that are relevant to the suspected or attempted financial exploitation, either as part of a referral or pursuant to an investigation, to:
(A) An agency charged with administering state adult protective services law; and
(B) A law enforcement agency or entity.

(2) The records may include historical records as well as records relating to recent transactions that may comprise financial exploitation.
(3) The records, materials, data, and information made available by a broker-dealer or investment adviser under subdivision (d)(1) of this section are confidential and are not subject to examination or disclosure as public information under the Freedom of Information Act of 1967, § 25-19-101 et seq.

(e) This section does not limit or otherwise impede the authority of the commissioner to access or examine the books and records of broker-dealers and investment advisers as otherwise provided by this chapter.