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CFPB Releases Four Guides on Managing Someone Else’s Money
October 31, 2013
Oct. 31, 2013
The CFPB has created four easy-to-understand booklets designed to help financial caregivers understand their role.
The Consumer Financial Protection Bureau has released four guides to help financial caregivers understand their role as a fiduciary.
Millions of Americans are managing money or property for a loved one who is unable to pay bills or make financial decisions. This can be very overwhelming.
The four “Managing Someone Else’s Money” guides are for agents under:
- Powers of attorney;
- Court-appointed guardians;
- Trustees; and
- Government fiduciaries (Rep Payee, VA Fiduciaries).
Each easy-to-understand booklet is designed to help financial caregivers understand their role. In each guide, the financial caregiver will find information about:
- What a fiduciary is, with details about the role they have accepted;
- The four basic duties of a fiduciary:
- Act only in the best interest of the principal;
- Manage the principal’s money carefully;
- Keep the principal’s money separate; and
- Keep good records and report as required;
- Other things the fiduciary should know about their role;
- Watching out for financial exploitation;
- Being on guard for consumer scams; and
- Where to go for help.
Credit unions may wish to provide new fiduciaries with these guides as part of their account-opening process. Being informed goes a long way.
Questions? Contact the Compliance Hotline: 1.800.546.4465, compliance@nwcua.org.
Posted in Compliance News.