SEC Proposes Revisions to Regulation S-P and Expansion of Customer Privacy Requirements

On March 4, 2008, the Securities and Exchange Commission (SEC) announced proposed changes to Regulation S-P (“Reg S-P”), the regulation governing the privacy and protection of customer information. A copy of the proposing release is available on the SEC’s website at

If adopted as proposed, the changes, designed to enhance the protection of customers’ nonpublic personal information, will undoubtedly cause firms in the securities industry to add additional infrastructure to comply with the new regulations . Additionally, the proposed changes to Reg S-P permit employees of securities firms to maintain certain limited customer information when switching between securities firms. The comment period on the proposed regulations runs through May 12, 2008.

Full overview and summary of proposed changes availabled via

About Richard Heller

Richard Heller is a partner at the New York City law firm of Thompson Hine LLP. His experience is in the formation of private offerings for hedge funds as well as the formation of registered broker-dealers and RIAs. In addition to his private practice, Richard has served three times on the Securities and Exchange Commission's Business Forum on Small Capital Formation. He has also authored and co-authored many resourceful books about Hedge Fund Law and hedge fund manager practices. Richard holds a law degree from Wake Forest University as well as a B.A. in American Studies from Rutgers. He serves on the Board of Directors for the Hedge Fund Association. For more information, please visit
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