RIA Compliance Blog
The Securities and Exchange Commission (SEC) and the Commodities Future Trading Commission (CFTC) issued a joint proposed rule and guidelines to help protect investors from identity theft enacted by Title X of the Dodd-Frank Wall Street Reform and Consumer Protection Act. This proposal currently does not apply to registered investment advisers. The SEC has recognized that registered investment advisers are unlikely to hold transaction accounts and thus would not qualify as a “financial institution.” The SEC is requesting comments on the proposed rule asking whether the rule should “omit investment advisers or any other SEC-registered entity from the list of entities covered by the proposed rule?” When the proposal is published in the federal register there will be a 60-day comment period.
Section 1088 of the Dodd-Frank Act transferred authority over parts of the Fair Credit Reporting Act (FCRA) from the Federal Trade Commission (FTC) to the SEC and the CFTC. The provisions amended section 615(e) by adding the CFTC and SEC to a list of federal agencies required to create identity theft regulations. The purpose of an identity prevention program is to detect, prevent and mitigate identity theft.
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