Section 36b-14 - (Formerly Sec. 36-482). Records and financial reports required(a)(1) Every registered investment adviser shall make, keep and preserve such accounts, correspondence, memoranda, papers, books and other records as the commissioner by regulation adopted, in accordance with chapter 54, or order prescribes. All such records shall be preserved for such period as the commissioner by regulation or order prescribes.(2) Every investment adviser that is registered with the Securities and Exchange Commission or excepted from the definition of investment adviser under Section 202(a)(11) of the Investment Advisers Act of 1940, and every registered broker-dealer, shall make, keep and preserve such accounts, correspondence, memoranda, papers, books and other records as the Securities and Exchange Commission requires. All such records shall be preserved for such period as the Securities and Exchange Commission requires.(3) Broker-dealer records required to be maintained under subdivision (2) of this subsection may be maintained in any form of data storage acceptable under Section 17(a) of the Securities Exchange Act of 1934 if they are readily accessible to the commissioner. Investment adviser records required to be maintained under this section may be stored on microfilm, microfiche or on an electronic data processing system or similar system utilizing an internal memory device provided that a printed copy of any such record is immediately accessible.(b)(1) Every registered investment adviser shall file such financial reports as the commissioner by regulation prescribes.(2) Every investment adviser that is registered with the Securities and Exchange Commission or excepted from the definition of investment adviser under Section 202(a)(11) of the Investment Advisers Act of 1940, and, subject to Section 15(i) of the Securities Exchange Act of 1934, every registered broker-dealer shall file such financial reports as the commissioner by regulation prescribes, except that the commissioner shall not require the filing of financial reports that are not required to be filed with the Securities and Exchange Commission.(c) If the information contained in any document filed with the commissioner under this section is or becomes inaccurate or incomplete in any material respect, the person making the filing shall promptly file a correcting amendment unless notification of the correction has been given under sections 36b-2 to 36b-34, inclusive.(d) All the records of a registered investment adviser and a registered broker-dealer referred to in subsection (a) of this section are subject at any time or from time to time to such reasonable periodic, special or other examinations by the commissioner, within or without this state, as the commissioner deems necessary or appropriate in the public interest or for the protection of investors. Every registered investment adviser and every registered broker-dealer shall keep such records open to examination by the commissioner and, upon the commissioner's request, shall provide copies of any such records to the commissioner. For the purpose of avoiding unnecessary duplication of examinations, the commissioner, insofar as the commissioner deems it practicable in administering this subsection, may cooperate with the securities administrators of other states, the Securities and Exchange Commission, and any self-regulatory organization.(e) Subject to Section 15(i) of the Securities Exchange Act of 1934 or Section 222 of the Investment Advisers Act of 1940, an agent may not have custody of funds or securities of a customer except under the supervision of a broker-dealer and an investment adviser agent may not have custody of funds or securities of a client except under the supervision of an investment adviser. Subject to Section 15(i) of the Securities Exchange Act of 1934 or Section 222 of the Investment Advisers Act of 1940, the commissioner may, by regulation adopted, in accordance with chapter 54, or order, prohibit, limit or impose conditions on a broker-dealer regarding custody of funds or securities of a customer and on an investment adviser regarding custody of funds or securities of a client.(f)(1) For purposes of this subsection, unless the context otherwise requires: (A) "Eligible adult" means any resident of the state who is sixty years of age or older;(B) "Financial exploitation" means the act or process of taking advantage of an eligible adult by another person or caretaker whether for a monetary, personal or other benefit, gain or profit. Such acts and processes include, but are not limited to: (i) Any wrongful or unauthorized taking, withholding, appropriation or use of an eligible adult's money, assets or property; (ii) any act or omission taken by a person, including, but not limited to, through the use of a power of attorney, guardianship or conservatorship of an eligible adult, to obtain control, through deception, intimidation or undue influence, over the eligible adult's money, assets or property and deprive such eligible adult of the ownership, use, benefit or possession of such eligible adult's money, assets or property; and (iii) converting an eligible adult's money, assets or property to deprive the eligible adult of the ownership, use, benefit or possession of such money, assets or property;(C) "Qualified person" means: (i) A broker-dealer, investment adviser, broker-dealer agent or investment adviser agent registered, or required to be registered, under this chapter; and (ii) any person serving in a supervisory, compliance or legal capacity for a broker-dealer or investment adviser described in subparagraph (C)(i) of this subdivision; and(D) "Trusted contact person" means an individual who is at least eighteen years of age who an eligible adult identifies and authorizes a qualified person to, at the qualified person's option, contact and disclose information about the account to address possible financial exploitation, or to confirm the specifics of the account holder's current contact information, health status or the identity of any conservator, executor, trustee or holder of a power of attorney.(2)(A) If a qualified person has reasonable cause to suspect or believe that financial exploitation of an eligible adult may have occurred, been attempted or is being attempted, the qualified person may promptly disclose, in any reasonable manner, to the Commissioner of Social Services and the Banking Commissioner such financial exploitation or suspected exploitation and the basis for such suspicion or belief.(B) A qualified person who, in good faith and exercising reasonable care, voluntarily discloses information pursuant to subparagraph (A) of this subdivision shall be immune from any administrative or civil liability that might otherwise arise solely from such disclosure or for any failure to notify the customer or client of such disclosure. Such immunity shall not attach where the qualified person was a participant in the financial exploitation or suspected financial exploitation described in such disclosure. This subdivision shall not affect existing laws imposing criminal liability, including, but not limited to, laws governing perjury or fraudulent or malicious reporting.(3)(A) Where an eligible adult has designated a third party as a trusted contact person to discuss the eligible adult's financial affairs, the qualified person may disclose to such third party such financial exploitation or suspected financial exploitation unless such qualified person reasonably believes that the third party is involved in such financial exploitation, suspected financial exploitation or other abuse of the eligible adult.(B) A qualified person who, in good faith and exercising reasonable care, makes a disclosure to a third-party trusted contact person pursuant to this subdivision shall be immune from any administrative or civil liability that might otherwise arise solely from such disclosure. Such immunity shall not attach where the qualified person was a participant in the misconduct described in such disclosure. This subdivision shall not affect existing laws imposing criminal liability.(C) Except in the case of an institutional account, an investment adviser registered or required to be registered under this chapter shall maintain records reflecting the name and contact information for any trusted contact person who an advisory client has designated to be contacted concerning the client's account. At the time the advisory account is opened or updated, the investment adviser shall disclose to the client in writing, which may be in an electronic format, that the investment adviser is authorized to contact the trusted contact person and disclose information about the client's account to address possible financial exploitation, confirm the specifics of the client's current contact information, health status or the identity of any legal guardian, executor, trustee or holder of a power of attorney. The absence of the name of, or contact information for, a trusted contact person shall not prevent an investment adviser from opening or maintaining an account for a client, provided the adviser makes reasonable efforts to obtain the name of, and contact information for, a trusted contact person.(4)(A) A broker-dealer or investment adviser may place a temporary hold on a disbursement of funds or securities or a transaction in securities from the account of an eligible adult, including, but not limited to, an account of which an eligible adult is a beneficiary, if: (i) The broker-dealer or investment adviser reasonably believes that financial exploitation of the eligible adult has occurred, is occurring, has been attempted or will be attempted; (ii) the broker-dealer or investment adviser, not later than two business days after the date that the broker-dealer or investment adviser first placed such temporary hold, provides oral or written notification, which may be in an electronic format, of the temporary hold and the reason therefor to all parties authorized to transact business on the account and to the trusted contact person, if any, unless such party or trusted contact person is unavailable or the broker-dealer or investment adviser reasonably believes that the party or trusted contact person has engaged, is engaged, or will engage in financial exploitation of the eligible adult; and (iii) the broker-dealer or investment adviser immediately initiates an internal review of the facts and circumstances that caused the broker-dealer or investment adviser to reasonably believe that financial exploitation of the eligible adult has occurred, is occurring, has been attempted or will be attempted.(B) The temporary hold authorized by subparagraph (A) of this subdivision shall expire not later than fifteen business days after the date when the broker-dealer or investment adviser first places the temporary hold on the disbursement of funds or securities or the transaction in securities unless otherwise terminated or extended by a state regulator, agency of competent jurisdiction or Probate Court, or extended by the broker-dealer or investment adviser pursuant to subparagraph (C) of this subdivision.(C) If the internal review initiated pursuant to subparagraph (A) of this subdivision supports the broker-dealer's or investment adviser's reasonable belief that financial exploitation of the eligible adult has occurred, is occurring, has been attempted or will be attempted, the temporary hold authorized by this subdivision may be extended by the broker-dealer or investment adviser for not longer than ten business days following the deadline established in subparagraph (B) of this subdivision, unless otherwise terminated or extended by a state regulator, agency of competent jurisdiction or Probate Court, or extended pursuant to subparagraph (D) of this subdivision.(D) If the internal review initiated pursuant to subparagraph (A) of this subdivision supports the broker-dealer's or investment adviser's reasonable belief that the financial exploitation of the eligible adult has occurred, is occurring, has been attempted or will be attempted and the broker-dealer or investment adviser has reported or provided notification of such reasonable belief to a state regulator, agency of competent jurisdiction or Probate Court, the temporary hold authorized by this subdivision may be extended by the broker-dealer or investment adviser for not longer than thirty business days following the deadline established in subparagraph (C) of this subdivision, unless otherwise terminated or extended by a state regulator, agency of competent jurisdiction or Probate Court.(E) If the broker-dealer or investment adviser receives a new request for the disbursement or transaction that is subject to a temporary hold under this subdivision pursuant to a power of attorney purportedly executed by the eligible adult, the temporary hold shall extend to any longer period of time that may be allowed under sections 1-350r and 1-350s to receive additional information to determine the acceptability of such power of attorney. If the broker-dealer or investment adviser, upon the expiration of any such longer period of time or completion of a review of such additional information, does not accept the power of attorney, the temporary hold shall be continued for not longer than fifty calendar days following the date on which the power of attorney was received by the broker-dealer or investment adviser.(F) Nothing in this subdivision shall preclude the Banking Commissioner, the Commissioner of Social Services or the Probate Court from sooner terminating or extending the temporary hold upon contemporaneous written notice to the broker-dealer or investment adviser.(5)(A) A registered broker-dealer or investment adviser shall provide access to, or copies of, records that are relevant to the suspected or attempted financial exploitation of an eligible adult to the commissioner and to a law enforcement agency, as part of a referral to the commissioner or a law enforcement agency, or upon a request made by the commissioner or law enforcement agency pursuant to an investigation or examination, as the case may be. Nothing in this subsection shall limit or otherwise impede the authority of the commissioner to access or examine the books and records of broker-dealers and investment advisers as provided by other applicable law. All records made available to agencies under this subsection shall not be considered public records for purposes of chapter 14. Pursuant to subsection (c) of section 36b-31, the commissioner may share and exchange with affected social services regulators information and documents related to the suspected financial exploitation.(B)(i) In the case of a broker-dealer, such records relevant to the suspected or attempted financial exploitation, described in subparagraph (A) of this subdivision, shall include the records prescribed under the Securities Exchange Act of 1934 and the regulations thereunder, as amended from time to time, and applicable self-regulatory organization rules.(ii) In the case of an investment adviser registered or required to be registered with the commissioner, such records relevant to the suspected or attempted financial exploitation, described in subparagraph (A) of this subdivision, shall include documentation: (I) Of relevant requests for disbursements; (II) supporting any disbursement delay; (III) supporting the investment adviser's reasonable belief that financial exploitation has occurred or is occurring; (IV) of the name and title of the person authorizing the disbursement delay; (V) of notifications to affected parties; and (VI) relating to the investment adviser's internal review of the matter.(6) A broker-dealer or investment adviser subject to this subsection shall, to the extent not inconsistent with federal law, develop training policies or programs reasonably designed to ensure that qualified persons understand and can effectively carry out the provisions of this subsection where necessary, including, but not limited to, training on the Connecticut Uniform Power of Attorney Act, sections 1-350 to 1-353b, inclusive, and how it relates to financial exploitation.(7) A broker-dealer or investment adviser that, in good faith and exercising reasonable care, complies with this subsection shall be immune from any administrative or civil liability that might otherwise arise from any action taken by such broker-dealer or investment adviser that is permitted by this subsection.(8) Nothing in this subsection shall be construed to limit any immunities, causes of action or remedies provided under the Connecticut Uniform Power of Attorney Act, sections 1-350 to 1-353b, inclusive.(9) If an eligible adult or a co-owner of an account of an eligible adult is an applicant for, or recipient of, means-tested benefits under chapters 319s to 319oo, inclusive, the Commissioner of Social Services shall consider any funds or securities subject to a temporary hold under subdivision (4) of this subsection to be unavailable assets for each owner or co-owner of the account while such temporary hold is in effect.Conn. Gen. Stat. § 36b-14
(P.A. 77-482, S. 13; P.A. 85-169, S. 6, 11; P.A. 97-220 , S. 7 , 15 ; P.A. 98-162 , S. 4 ; P.A. 05-177 , S. 4 ; P.A. 07-72 , S. 9 ; P.A. 10-141 , S. 9 ; P.A. 16-65 , S. 11 .)
Amended by P.A. 23-0161,S. 1 of the Connecticut Acts of the 2023 Regular Session, eff. 7/1/2024.Amended by P.A. 16-0065, S. 11 of the Connecticut Acts of the 2016 Regular Session, eff. 5/26/2016.Amended by P.A. 10-0141, S. 9 of the February 2010 Regular Session, eff. 6/7/2010.