According to FINRA’s estimates, for the next 15 years, an average of 10,000 Americans will turn 65. Those of us who work with the elderly regularly, need to be attuned to deciding whether our clients have the capacity to make decisions regarding their financial affairs? All lawyers, be it in the practice area of estates, securities, or virtually any other discipline often have to make a capacity determination, while contracting services and sometimes along the way. We often have to determine if our client has the capacity to have entered into certain legal transactions.
IDENTIFYING SUSPICIOUS ACTIVITY
Ms. Jenice Malecki was a moderator today at Public Investors Arbitration Bar Association’s (PIABA) panel on ‘The Danger of Diminished Capacity, Ethics as a Broker and for the Lawyer.’ The seminar discussed what diminished capacity is, important studies on dealing with clients with diminished capacity as financial advisors and lawyers, and elder financial abuse and privacy law issues. The panel moderated by Ms. Malecki consisted of distinguished members of the financial and legal community including the President of the Investor Trust Protection, a former SEC attorney and an elder lawyer.
According to FINRA’s estimates, the elderly lose approximately $ 2.9 billion every year due to fraud and an average of 10,000 Americans will turn 65 over the next 15 years. Senior investors with diminished capacity are more at risk of falling victim to financial fraud than other investors and the financial industry should fully utilize its power to prevent substantial economic harm to elderly clients. Ms. Malecki has also co-authored an article for PIABA titled Protecting Clients with Diminished Capacity In The Securities Industry: It’s Tricky.
This panel is part of PIABA’s 24th Annual Meeting held in Florida from Oct 21- 23, 2015.