Inactive Investor Accounts Face Sooner Outreach
Maryland account holders could hear from firms after 18 months of inactivity if proposed SEC changes are adopted.
Updated on Nov. 5, 2026 in Financial Planning
Maryland Comptroller Brooke E. Lierman submitted public comments to the U.S. Securities and Exchange Commission on proposed amendments to Rule 17Ad-17, which governs how transfer agents, brokers, and dealers identify and reach investors with inactive or lost accounts. She supported requiring firms to contact investors sooner when accounts go inactive while urging the SEC to preserve state unclaimed property protections for Maryland residents.
Why it matters
The comments center on whether forgotten investment accounts stay with the original state program or can be pulled out by waiver at account opening. Lierman warned that overriding state protections could leave assets with financial institutions indefinitely, subject to ongoing fees and harder for owners and heirs to recover, which bears directly on Maryland households with dormant accounts.
Maryland's unclaimed property office holds more than $3 billion across all property types and returned over $264 million to owners across the last three fiscal years. The proposed SEC rule would require firms to begin contacting investors after 18 months of inactivity, with at least two notifications.
The players
Brooke E. Lierman
Maryland State Comptroller whose office runs the state's unclaimed property program, which holds forgotten accounts and returns them to owners.
U.S. Securities and Exchange Commission
Federal regulator that writes the rules brokers, dealers, and transfer agents follow, including rules on contacting investors with inactive accounts.
The details
Under the proposed amendments, brokers and transfer agents would be required to reach out to investors once an account has been inactive for 18 months and send at least two notices. The Comptroller endorsed pairing those outreach efforts with verified electronic contact information. Her opposition targets requests that investors waive state unclaimed property protections when opening an account, which would shift custody of a dormant asset away from state programs. Maryland holds unclaimed property indefinitely without charging maintenance, management, or dormancy fees, which the Comptroller contrasted with the fee exposure that can accrue at financial institutions.
Timeline
November 4, 2026: Comptroller Lierman submitted her public comments to the SEC from Annapolis, Md.
18 months of account inactivity is the proposed trigger for firms to begin contacting investors.
Money Landscape
The debate sits within a broader federal and state dispute over who controls dormant financial assets that accumulate as accounts are left untouched. Maryland's long-running program, operating for more than 50 years, offers one benchmark for how states hold such property.
If you have an investment or brokerage account you have not used in a long time, the proposed rule could mean your firm reaches out sooner. Maryland residents with dormant assets should check their state unclaimed property records, since the Comptroller says state programs hold these assets without maintenance or dormancy fees.
The takeaway
Keep track of accounts you no longer use and update your contact information with each financial institution. If you suspect a forgotten account, search your state's unclaimed property records, and consider discussing the handling of old assets with a qualified financial professional.
Further reading
For more on handling old accounts, see Financial Planning in our Maryland coverage.
Source note: This article includes information reported by SOUTHERN MARYLAND'S COUNTRY STATION, COUNTRY 102.9 WKIK.
