By Trish Svoboda

On April 23 Vicki Schmidt, the Insurance Commissioner of Kansas, declared that two securities bills proposed by the Kansas Department of Insurance have been enacted into law. These laws aim to safeguard vulnerable Kansans from financial abuse and reinforce the Department’s power to impose penalties on wrongdoers.

HB 2562, also known as the Act to Protect Vulnerable Adults from Financial Exploitation, is derived from a standard law by the North American Securities Administrators Association (NASAA). This law has been implemented in some manner in 41 other states. The newly enacted law permits agents, broker-dealers, investment advisors, and representatives to stop transactions for elderly and dependent adults if there’s a suspicion of fraud, thereby ensuring the legitimacy of the investment. In addition, the Department will be alerted to conduct an investigation.

SB 405 authorizes the Department to impose penalties on non-registered individuals who control violators of the Kansas Uniform Securities Act. This law closes a legal gap and enhances the safeguards for the residents of Kansas.