Proposed Amendments to Regulation S-P to Enhance Protection of Customer Information and Reduce Risk of Identity Theft

The Securities and Exchange Commission is proposing amendments to Regulation S-P that would enhance the protection of customer information. The proposed updates would require broker-dealers, investment companies, registered investment advisers, and transfer agents to adopt written policies and procedures for an incident response program as well as provide notice to individuals whose sensitive customer information was or is reasonably likely to have been accessed or used without authorization. Other changes include broadening and aligning the scope of the safeguards rule and disposal rule to cover “customer information”, extending the safeguards rule and disposal rule to transfer agents registered with other agencies, and conforming Regulation S-P's existing provisions relating to the delivery of an annual privacy notice. The public comment period will remain open until 60 days after the date of publication of the proposing release in the Federal Register.