The NASAA plan would allow firms to report suspected abuse to adult protective services and securities regulators without fear of legal actions, such as lawsuits, for violating privacy, among other things, Shaw said.
Firms would also have to make reasonable efforts to get the name and contact details for a trusted contact person when opening a customers' account.
The NASAA effort, in the works for about a year, is similar to a Sept. 17 proposal announced by the Financial Industry Regulatory Authority, Wall Street’s industry funded watchdog.