Michigan securities brokers, dealers, and investment advisors are now required by law to report suspected financial exploitation of older adults.
Michigan Financial Professionals Now Mandated Reporters
Michigan’s Uniform Securities Act regulates the state’s securities industry.
Signed by Governor Gretchen Whitmer in December 2023, the statute officially went into effect in March 2024, and administrative rules were enacted in May 2025. Attorney General Dana Nessel and the Michigan Elder Abuse Task Force championed the updated law, which designates securities brokers, dealers, and investment advisors as mandatory reporters of suspected financial exploitation of vulnerable adults.
This legislation is part of a broader movement led by Michigan’s Elder Abuse Task Force, a statewide group formed in 2019 and made up of 55 organizations in the public, private, and nonprofit sectors.
This is a major step forward in addressing the widespread issue of elder financial abuse.
According to the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN), financial institutions reported nearly $27 billion in suspected elder financial exploitation (EFE) in just one year.
What Is Elder Financial Exploitation?
Elder financial exploitation (EFE) is the illegal or improper use of an older adult’s funds, property, or assets. This can take the form of:
- Scams, where a stranger or imposter deceives an older adult into transferring money
- Theft, where a trusted person, such as a caregiver, friend, or even family member, steals directly from an elder’s account or takes control of their financial resources
EFE can affect checking and savings accounts, retirement investments, or other assets, and it can leave victims emotionally distressed and financially unstable.
Why Financial Professionals?
Financial professionals are uniquely positioned to spot red flags of elder financial abuse, including:
- Unusual withdrawals
- Sudden account changes
- Irregular investment activity
Until now, these professionals were not required to report suspicious behavior in Michigan, leaving a critical loophole in the state’s elder protection system.
Under the amended law, securities brokers, dealers, and investment advisors must now report suspected financial exploitation to Adult Protective Services (APS) or law enforcement.
This change brings Michigan in line with many other states that already include financial professionals as mandated reporters, such as Arkansas, California, Colorado, Florida, and others.
What the Law Requires
Michigan’s amended Uniform Securities Act now includes the following requirements:
- Who must report: Securities brokers, dealers, and investment advisors
- What must be reported: Any reasonable suspicion of financial exploitation of a vulnerable or older adult
- Where to report: Reports should be made to Adult Protective Services or local law enforcement
- When to report: As soon as the suspicion arises; there is no requirement for proof
The law also allows financial professionals to delay disbursements of funds if they believe financial exploitation is occurring, giving authorities time to investigate.
The Importance of Reporting
Financial abuse is often difficult for victims to detect or prove, especially when the perpetrator is a trusted individual. Approximately 72% of elder financial abuse is perpetrated by someone the victim knows.
As a mandated reporter, you are not expected to investigate or confirm abuse. Your role is to report reasonable suspicions so trained authorities can take over.
Early reports can help prevent life-altering financial loss, protect older adults' independence, and reduce the risk of long-term emotional trauma.
How to Report Elder Abuse in Michigan
Mandated reporters and concerned citizens can report suspected elder abuse, neglect, or exploitation by calling:
- Adult Protective Services: 1-855-444-3911 (available 24/7)
- Michigan Attorney General Elder Abuse Hotline: 1-800-24-ABUSE (1-800-242-2873)
Learn more about elder abuse and how to report it from the Michigan Department of Attorney General.
Take a mandated reporter training course. Explore the online Mandated Reporting of Elder & Dependent Adult Abuse training available at the Mandated Reporter Training platform.
Protecting Older Adults Is Everyone’s Responsibility
Elder financial exploitation is on the rise, and so are the laws designed to stop it. Michigan’s latest mandate recognizes the vital role financial professionals play in keeping older adults safe. If you work in the securities field, now is the time to understand your responsibilities and take action when you suspect a client is being financially exploited.
