HR 2478 · Passed House · 07-13-26
Financial Exploitation Prevention Act of 2025
What does the Financial Exploitation Prevention Act of 2025 do?
HR 2478 is a House bill sponsored by Rep. Ann Wagner (R-MO). Lets mutual fund companies temporarily hold up a withdrawal when they reasonably believe an older or vulnerable customer is being financially exploited. Funds that opt in can ask customers for a trusted contact and may delay a redemption beyond the usual 7-day limit to investigate. Allows mutual funds to postpone redemptions of securities when they suspect financial exploitation of an older or vulnerable customer.
Did HR 2478 pass? Where it stands
As of July 17, 2026, HR 2478 has passed the House.
Status: Passed House
Latest vote: House Passed 414–2 on June 25, 2026
Outlook: Likely
Key provisions
- Redemption Holds for Suspected Exploitation
- Funds may delay a redemption past the normal 7-day limit, up to 15 business days
- Holds apply when a "specified adult" is suspected of being financially exploited
- Period may be extended 10 more business days after an internal review
- Trusted Contact and Disclosures
- Participating funds must request a trusted adult contact for direct accounts
- Must disclose that the contact may be reached about possible exploitation
- A trusted contact suspected of the exploitation is not notified of a hold
- Who Is Covered and Oversight
- "Specified adult" = age 65+, or 18+ with an impairment limiting self-protection
- Held funds kept in a demand deposit account; records made available to the SEC
- SEC must report to Congress within 1 year with further recommendations
Last updated July 15, 2026