Senators have come up with a proposal for a strategy for protecting older consumers and others against sales representatives with misleading financial services credentials.
Sens. Herbert Kohl, D-Wis., and David Vitter, R-La., have introduced S. 2794, a bill that would create the Senior Investor Protection Act of 2008.
The bill would start by setting up a grant program to encourage state regulators to adopt a uniform standard for the accreditation of senior financial advisors.
The standards would be based on a model announced Monday by the North American Securities Administrators Association, Washington.
The bill would provide grants to help states ramp up senior investor protection efforts.
The bill also calls on the National Association of Insurance Commissioners, Kansas City, Mo., “to work with NASAA to develop improved senior designation rules and suitability standards for insurance products, such as deferred variable annuities, which may be inappropriately sold to seniors,” according to officials at the U.S. Special Committee on Aging.
Kohl is the chairman of the committee and Vitter is a committee member.
In addition to NASAA, organizations endorsing the bill include the American College, Bryn Mawr, Pa., and the Financial Planning Association, Denver.