Current through February 27, 2024
1.
A broker-dealer or investment adviser may delay a transaction or disbursement
from an account of an older person or vulnerable person or from an account from
which an older person or vulnerable person is a beneficiary if:
(a) The broker-dealer, investment adviser or
designated reporter reasonably believes, after initiating an internal review of
the requested transaction or disbursement and the suspected exploitation, that
the requested transaction or disbursement may result in the exploitation of the
older person or vulnerable person.
(b) The broker-dealer or investment adviser:
(1) Immediately, but not later than 2
business days after the date of the delayed requested transaction or
disbursement, provides written notification of the delay and the reason for the
delay to all parties authorized to transact business on the account, other than
any party that is reasonably believed to have engaged in the suspected or
attempted exploitation of the older person or vulnerable person;
(2) Immediately, but not later than 2
business days after the date of the delayed requested transaction or
disbursement, notifies the Administrator of the Securities Division of the
Office of the Secretary of State and the Administrator of the Aging and
Disability Services Division of the Department of Health and Human Services;
and
(3) Continues its internal
review of the suspected or attempted exploitation of the older person or
vulnerable person, as necessary, and provides status updates to the
Administrator of the Securities Division and the Administrator of the Aging and
Disability Services Division, respectively, upon request.
2. Any delay of a transaction or
disbursement authorized by this section will expire upon the sooner of:
(a) A determination by the broker-dealer or
investment adviser that the transaction or disbursement will not result in the
exploitation of an older person or vulnerable person; or
(b) Fifteen business days after the date on
which the broker-dealer or investment adviser first delayed a transaction or
disbursement of the funds, unless either the Securities Division or Aging and
Disability Services Division requests that the broker-dealer or investment
adviser extend the delay, in which case the delay must expire not more than 25
business days after the date on which the broker-dealer or investment adviser
first delayed a transaction or disbursement of the funds unless otherwise
terminated or further extended by the Securities Division, Aging and Disability
Services Division or an order of a court of competent jurisdiction.
3. A court of competent
jurisdiction may enter an order extending the delay of a transaction or the
disbursement of funds or may order other protective relief based on the
petition of:
(a) The Administrator of the
Securities Division or the Administrator of the Aging and Disability Services
Division, respectively;
(b) The
broker-dealer or investment adviser that initiated the delay under this
section; or
(c) Any other
interested party.
4. A
broker-dealer or investment adviser that, in good faith and exercising
reasonable care, complies with this section shall not be penalized or
sanctioned by the Administrator of the Securities Division for a delay in a
transaction or disbursement.
5. As
used in this section:
(a) "Exploitation" has
the meaning ascribed to it in
NRS
200.5092.
(b) "Older person" has the meaning ascribed
to it in NRS
200.5092.
(c) "Vulnerable person" has the meaning
ascribed to it in NRS 200.5092.
Added
to NAC by Sec'y of State by
R018-21A,
eff. 6/2/2023
NRS
90.614,
90.6145,
90.740,
90.750
