Bill Overview
Title: Empowering States to Protect Seniors from Bad Actors Act
Description: This bill reauthorizes through FY2028 and otherwise revises the Senior Investor Protection Grant Program. The bill moves the program from the Consumer Financial Protection Bureau to the Securities and Exchange Commission, establishes a task force to oversee the program, and eliminates certain grant eligibility requirements.
Sponsors: Sen. Van Hollen, Chris [D-MD]
Target Audience
Population: Senior citizens worldwide
Estimated Size: 54000000
- The bill is titled 'Empowering States to Protect Seniors from Bad Actors Act', indicating a focus on senior citizens.
- The Senior Investor Protection Grant Program's aim is to protect senior investors, suggesting seniors invested in financial products will be directly affected.
- Securities fraud often disproportionately affects seniors due to their accumulated savings, making them a primary target for bad actors.
- Any senior citizen involved in investing is potentially at risk and thus may benefit from increased protections under this program.
Reasoning
- The policy targets seniors who are involved in investments, aiming to protect them from financial scams and frauds, which means a significant portion of older Americans could be impacted positively.
- We consider that the cost constraints will focus the policy on the most vulnerable, those with high levels of investment and who may lack the support to protect themselves from financial crimes.
- The policy would have a variable impact depending on an individual's current involvement in investing and past experiences with financial fraud, thus affecting their Cantril wellbeing scores differentially.
- People not currently invested or those with safe, well-managed investment portfolios may see less direct impact.
Simulated Interviews
Retired Teacher (Florida)
Age: 68 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 10/20
Statement of Opinion:
- I'm glad there are efforts to protect seniors like me from financial scams.
- As someone who has been targeted before, this gives me peace of mind.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 8 | 7 |
| Year 10 | 9 | 7 |
| Year 20 | 9 | 8 |
Retired Engineer (California)
Age: 72 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 3.0 years
Commonness: 8/20
Statement of Opinion:
- I already have a good advisor, but it's reassuring to hear about more protections.
- The policy should focus on educating seniors about safe investments.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 8 | 8 |
| Year 10 | 8 | 8 |
| Year 20 | 8 | 8 |
Retired Nurse (Texas)
Age: 75 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 5.0 years
Commonness: 7/20
Statement of Opinion:
- I haven't invested much because I've heard too many horror stories of scams.
- If it works, it could encourage people like me to invest more safely.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 7 | 6 |
| Year 10 | 7 | 6 |
| Year 20 | 7 | 6 |
Retired Banker (New York)
Age: 67 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 2.0 years
Commonness: 4/20
Statement of Opinion:
- I think this policy could help many who aren't as versed in investments as I am.
- It's a move in the right direction, but education is equally important.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 8 | 8 |
| Year 10 | 8 | 8 |
| Year 20 | 8 | 8 |
Retired Secretary (Illinois)
Age: 70 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 6/20
Statement of Opinion:
- I haven't started investing yet because I'm worried about getting scammed.
- This policy makes me feel more secure about finally investing my retirement savings.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 8 | 6 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 9 | 7 |
| Year 20 | 9 | 8 |
Retired Electrician (Ohio)
Age: 74 | Gender: male
Wellbeing Before Policy: 4
Duration of Impact: 5.0 years
Commonness: 5/20
Statement of Opinion:
- I've lost trust in financial institutions due to past losses.
- The policy sounds good, but let's see the implementation.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 4 |
| Year 2 | 5 | 4 |
| Year 3 | 6 | 5 |
| Year 5 | 6 | 5 |
| Year 10 | 7 | 6 |
| Year 20 | 7 | 6 |
Retired Librarian (Georgia)
Age: 65 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 8.0 years
Commonness: 7/20
Statement of Opinion:
- I'm just starting to invest and want to do it safely.
- More resources and protection would definitely help me.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 8 | 7 |
| Year 10 | 8 | 7 |
| Year 20 | 8 | 7 |
Retired Homemaker (Michigan)
Age: 80 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 0.0 years
Commonness: 3/20
Statement of Opinion:
- I don't have any investments, so this doesn't really affect me.
- It's good to hear that seniors are getting more protection, though.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 5 |
| Year 2 | 5 | 5 |
| Year 3 | 5 | 5 |
| Year 5 | 5 | 5 |
| Year 10 | 5 | 5 |
| Year 20 | 5 | 5 |
Retired Military (Arizona)
Age: 66 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 2.0 years
Commonness: 5/20
Statement of Opinion:
- I feel pretty secure with my investments through my credit union.
- The policy won't change much for me, but it could help others.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 7 | 7 |
Retired Business Owner (Oregon)
Age: 78 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 6.0 years
Commonness: 5/20
Statement of Opinion:
- I've been through fraud before and it's devastating.
- I think this policy will help, but it's essential to focus on preventing such cases.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 8 | 7 |
| Year 10 | 8 | 7 |
| Year 20 | 8 | 7 |
Cost Estimates
Year 1: $18000000 (Low: $16000000, High: $20000000)
Year 2: $18500000 (Low: $16500000, High: $20500000)
Year 3: $19000000 (Low: $17000000, High: $21000000)
Year 5: $20000000 (Low: $18000000, High: $22000000)
Year 10: $22000000 (Low: $20000000, High: $24000000)
Year 100: $25000000 (Low: $23000000, High: $27000000)
Key Considerations
- Transferring the program to the SEC simplifies integration with existing investment protection frameworks.
- The SEC's expertise may enhance the program's effectiveness in protecting senior investors.
- Potential increased demand for grant applications may require careful monitoring.