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SEC Proposes Rule To Protect Identity Theft under Dodd-Frank

The SEC published a proposed rule promulgated under Dodd-Frank to deal with issues of identity theft when dealing with broker/dealers, investment advisors, and other investment professionals. The rule would require SEC regulated entities to implement written identity theft policies and procedures to ensure investors’ identity remains confidential.  It uses what they call a program of “red flags.”

There is a 60 day comment period before the rules would go into effect from the February 28, 2012 publish date.

The press release can be found here.  The proposed rule can be found from the SEC website in pdf form.