June is Elder Abuse Awareness Month, a time to raise awareness of the growing trend of financial exploitation, which has become one of the most prevalent forms of abuse targeting the senior population. During the 2025 Legislative session, Florida lawmakers enacted significant changes to the state’s securities regulations with the passing of House Bill 379. Signed into law by Governor Ron DeSantis on May 16, 2025, the new amendments enhance investor protections aimed at safeguarding vulnerable adults from financial harm. The legislation extends the maximum delay period during which financial institutions may postpone the disbursement of funds to protect vulnerable adults and revises the conditions under which securities transactions are exempt from state registration requirements.
Section 517.34 of the Florida Statutes, titled “Protection of Specified Adults,” is part of the Florida Securities and Investor Protection Act. This section serves as Florida’s “report and hold” statute, offering protections for senior investors aged 65 and older, as well as other vulnerable adults.[i] The law is designed to prevent or minimize the damages stemming from financial exploitation by empowering broker-dealers and investment advisers to delay transactions and disbursements from investor accounts of seniors and vulnerable adults when there is reasonable suspicion that financial exploitation of the specified adult has occurred, is occurring, has been attempted, or will be attempted in connection with the disbursement or transaction, provided that certain other conditions are met.
Section 517.34 provides for a temporary “hold” on disbursements for an initial period of fifteen (15) business days. The amendment introduced by House Bill 379 extends the duration of the secondary hold period permitted by Section 517.34. If the broker-dealer or investment adviser reviews the available facts and continues to reasonably believe that exploitation may be occurring, the hold may be extended by thirty (30) business days – this is an increase from the previous allowance of an additional ten (10) business days. As a result, the maximum hold period on transactions and disbursements has now increased from twenty-five (25) to forty-five (45) business days.
This amendment aligns Section 517.34 with Section 415.10341 of the Florida Statutes, a similar law passed in 2024 that introduced a thirty (30) day secondary hold period for delayed disbursements, applicable to financial institutions such as banks and credit unions.[ii] This update promotes consistency in the state’s approach to protecting vulnerable adults from financial exploitation, while also providing greater clarity across financial sectors to support compliance with the regulations.
The Bill, sponsored by Representative Webster Barnaby (R – Lake and Orange Counties), also amends Section 517.0616 regarding the availability of securities registration exemptions for issuers under certain circumstances. Florida permits exemptions from registration requirements for specific transactions. Previously, under Section 517.0616, these registration exemptions were not available to issuers who would otherwise be disqualified under Securities and Exchange Commission (“SEC”) Rule 506(d) and 17 C.F.R. s. 230.506(d), as amended. The Bill clarifies the disqualification criteria of Section 517.0616 to include disqualification for issuers in situations where, if at the time of an offer to sell a security, the issuer or a predecessor of the issuer; an affiliated issuer; a director, executive officer, or other officer of the issuer participating in the offering; a general partner or managing member of the issuer; a beneficial owner of 20 percent or more of the issuer’s outstanding voting equity securities (calculated on the basis of voting power); or a promoter connected with the issuer in any capacity at the time of such sale would have been disqualified under SEC Rule 506(d) and 17 C.F.R. s. 230.506(d), as amended. This amendment expands the disqualification net around those closely associated with issuers of securities, in order to close potential loopholes and tighten oversight of the sale of securities.
House Bill 379 became effective immediately upon being signed into law by Governor DeSantis on May 16, 2025.
[i] “Specified Adult” means a natural person 65 years of age or older, or a vulnerable adult. Section 517.34(1)(b), Fla. Stat. (2024). “Vulnerable Adult” means a person 18 years of age or older whose ability to perform the normal activities of daily living or to provide for his or her own care or protection is impaired due to a mental, emotional, sensory, long-term physical, or developmental disability or dysfunction, or brain damage, or the infirmities of aging. Section 415.102(28), Fla. Stat. (2024).
[ii] Section 655.005(1), Florida Statutes defines “Financial Institution” as a state or federal savings or thrift association, bank, savings bank, trust company, international bank agency, international banking corporation, international branch, international representative office, international administrative office, international trust entity, international trust company representative office, qualified limited service affiliate, credit union, or an agreement corporation operating pursuant to s. 25 of the Federal Reserve Act, 12 U.S.C. ss. 601 et seq. or Edge Act corporation organized pursuant to s. 25(a) of the Federal Reserve Act, 12 U.S.C. ss. 611 et seq.
