Lierman Urges SEC to Protect State Unclaimed Property

Maryland's comptroller backs faster investor outreach on inactive accounts but opposes any override of state unclaimed property laws.

Updated on Nov. 5, 2026 in Financial Planning

Lierman Urges SEC to Protect State Unclaimed Property

Maryland Comptroller Brooke E. Lierman submitted public comments to the U.S. Securities and Exchange Commission on proposed amendments to Rule 17Ad-17. She supported requiring firms to contact investors sooner when accounts go inactive while urging the SEC to preserve state unclaimed property protections.

Why it matters

Overriding state protections could leave forgotten assets with financial institutions indefinitely, subject to ongoing fees and harder for owners and heirs to recover. The comments come as federal rules on inactive investor accounts are being revised.

Maryland's Office of the Comptroller safeguards more than $3 billion in unclaimed property of all types and has returned more than $264 million to rightful owners over the last three fiscal years. The proposed rule would trigger investor contact after 18 months of account inactivity, with at least two notifications.

The players

Brooke E. Lierman

Maryland's State Comptroller, who oversees the state's unclaimed property program and leads its public advocacy on financial protections for residents.

U.S. Securities and Exchange Commission

The federal agency that regulates securities markets and is considering amendments to Rule 17Ad-17 governing how transfer agents, brokers and dealers reach investors with inactive accounts.

The details

Lierman endorsed using verified electronic contact information alongside other outreach methods and opposed requests that investors waive state unclaimed property protections when opening an account. Maryland holds unclaimed property indefinitely, without maintenance, management, or dormancy fees, a practice the program has followed for more than 50 years.

The Comptroller submitted her comments to the SEC on November 4, 2026.
Under the proposal, firms would begin contacting investors after 18 months of account inactivity.

Market Dynamics

The comments sit at the intersection of federal securities recordkeeping under SEC Rule 17Ad-17 and long-standing state authority over dormant property. Lierman's push to keep state protections intact reflects the ongoing federal-state tension over who controls forgotten financial assets.

Investors with dormant accounts may be contacted sooner by brokers and transfer agents if the proposed rule takes effect. Maryland residents can check for unclaimed property held by the state, which is kept indefinitely without maintenance or dormancy fees.

The takeaway

Check whether you have unclaimed property in your state and keep contact details current with financial institutions so you can be reached if an account goes inactive.