§ 502.806 — Disbursements or transactions — delay

Iowa § 502.806

• Jurisdiction: Iowa
• Title XII: BUSINESS ENTITIES
• Ch. 502: UNIFORM SECURITIES ACT (BLUE SKY LAW)

Text

1. If a broker-dealer, investment adviser, or qualified individual reasonably believes a
disbursement or transaction will likely result in or contribute to the financial exploitation of
an eligible adult, the broker-dealer, investment adviser, or qualified individual shall initiate
an internal review of the requested disbursement or transaction.
2. A broker-dealer or investment adviser may delay a disbursement or transaction from
an eligible adult’s account or an account on which an eligible adult is a beneficiary if all of
the following apply:
a. The broker-dealer, investment adviser, or qualified individual reasonably believes, after
initiating the internal review referenced in subsection 1, that the requested disbursement or
transaction will likely result in or contribute to the financial exploitation of an eligible adult.
b. Immediately, but in no event more than two business days after the disbursement or
transaction is delayed, the broker-dealer or investment adviser provides written notification
of the delay and the reason for the delay to all persons authorized to transact business on
the account. Broker-dealers, investment advisers, and qualified individuals shall not notify a
personauthorizedtotransactbusinessontheaccountifthebroker-dealer,investmentadviser,
or qualified individual reasonably believes the person has committed financial exploitation,
attempted financial exploitation, or other abuse of the eligible adult.
c. Immediately, but in no event more than two business days after the disbursement or
transaction is delayed, the broker-dealer or investment adviser notifies the administrator of
the delay and provides to the administrator the reason for the delay, including the results of
the internal review referenced in subsection 1.
d. The broker-dealer or investment adviser continues the internal review of the suspected
or attempted financial exploitation of the eligible adult, as necessary, and provides the
administrator with updates upon request.
3. Any delay of a disbursement or transaction authorized by this section will expire upon
the first to occur of any of the following:
a. A determination by the broker-dealer or investment adviser that the disbursement or
transaction will not result in or contribute to financial exploitation of the eligible adult.
b. Fifteen business days after the date on which the broker-dealer or investment adviser
first delayed disbursement of the funds or transaction, unless the administrator requests
the broker-dealer or investment adviser to extend the delay, in which case the delay shall
expire no more than twenty-five business days after the date on which the broker-dealer or
investment adviser first delayed the disbursement of the funds or the transaction.
61 UNIFORM SECURITIES ACT (BLUE SKY LAW), §502.810
4. Notwithstanding subsection 3, upon the petition of the administrator, the broker-dealer
or investment adviser who initiated the delay pursuant to this section, or another interested
party, a court of competent jurisdiction may enter an order terminating, extending, or
modifying the delay of the disbursement or transaction and may order other protective relief.
5. The administrator may adopt rules regarding the form and manner of the notifications
under this section.