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 www.sec.gov/rules/proposed.shtml.
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 http://www.thompsonhine.com/publications/publication1402.html.