Accredited Wealth Management Advisor Practice Exam

If an adviser suspects elder abuse related to unusual distributions from a client’s account, what is the first recommended action?

1. Use the Senior Safe Act to put a temporary hold on distributions from the account.

2. Use the tenets of the Elder Justice Initiative to put a temporary hold on distributions from the account.

3. Attempt to contact a listed "trusted person".

4. Assume the best and do nothing.

The correct answer is: Use the tenets of the Elder Justice Initiative to put a temporary hold on distributions from the account.

The most appropriate action in this scenario is to utilize the tenets of the Elder Justice Initiative to put a temporary hold on distributions from the account. This initiative aims to enhance the protection of vulnerable older adults from exploitation and financial abuse. By applying these principles, the adviser takes a precautionary step to safeguard the client's funds while investigating the situation further. Implementing a hold on account distributions allows the adviser time to assess the circumstances surrounding the unusual withdrawals. This approach helps ensure that any potential financial abuse is addressed before any assets are further compromised. Furthermore, it demonstrates a commitment to protecting the client's interests and aligning with ethical and legal standards concerning elder abuse. The other options vary in their effectiveness. While contacting a trusted person could be beneficial, this step may not provide immediate protection to the client's assets. Simply assuming the best and taking no action can leave the client vulnerable to potential harm. Additionally, while the Senior Safe Act allows advisers to place a hold on distributions, the Elder Justice Initiative offers a broader framework for understanding and addressing elder abuse comprehensively, making it the more suitable choice in this context.