SAFER Act Aims to Block States from Seizing Long-Term Investors' Assets
Event summary
- The Investment Company Institute (ICI) supports the bipartisan SAFER Act, introduced by Representatives Sam Liccardo (D-CA) and Mike Lawler (R-NY), to prevent states from seizing long-term investors' assets under unclaimed property laws.
- Over 128 million Americans invest in regulated funds with a long-term strategy, but some states can declare inactive accounts abandoned and seize them through escheatment.
- The SAFER Act proposes federal guardrails to require proof of owner's death or beneficiary claims before seizing investment accounts and prohibits liquidation until abandonment is proven.
The big picture
The SAFER Act addresses a growing conflict between state revenue needs and federal investor protections, highlighting the tension between local governance and national financial security. With over $128 million Americans investing long-term, the outcome could reshape how unclaimed property laws interact with retirement and investment strategies.
What we're watching
- Legislative Momentum
- Whether the SAFER Act gains traction in Congress amid bipartisan support and growing awareness of state escheatment practices.
- State Resistance
- The pace at which states like Delaware, which rely heavily on unclaimed property revenue, push back against federal oversight.
- Investor Awareness
- How quickly investors become informed about the risks of state escheatment and advocate for protective measures.