On May 18, 2021, South Carolina became the latest state to enact legislation to protect elder and vulnerable adults from financial exploitation. The new law allows broker-dealers and state-registered investment advisers to report suspected financial exploitation to the Adult Protective Services Program in the Department of Social Services and the Securities Division. Firms are also allowed, but not required, to contact third parties previously designated by the eligible adult.
South Carolina’s law also permits firms to delay disbursements or transactions from an account owned by an eligible adult or an account on which an eligible adult is a beneficiary if certain conditions are met. Firms that take action pursuant to these provisions in good faith and exercising reasonable care are granted civil and administrative immunity.