Aaron Nicodemus reports:
The Securities and Exchange Commission (SEC) will require broker-dealers and registered investment advisers to adopt written policies and procedures for handling data breaches of customer data and notify affected customers within 30 days.
On Thursday, the SEC approved amendments to Regulation S-P, known as the safeguards rule. The rule requires covered entities to have policies and procedures in place to safeguard and dispose of sensitive customer data, as well as provide privacy notices and opt out procedures.
The amendments widen obligations for broker-dealers, funding portals, registered investment advisers, investment companies, and transfer agents to create and implement a data breach incident response program.
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The amendments take effect 60 days after publication in the Federal Register, with a compliance date of 18 months after the effective date for larger firms and two years for smaller firms.
Read more at Compliance Week.