SEC Adopts Identity Theft Rule

April 10, 2013

The SEC adopted rules requiring broker-dealers, mutual funds, investment advisers, and certain other entities regulated by the agency to adopt programs to detect red flags and prevent identity theft. The SEC adopted the rules jointly with the Commodity Futures Trading Commission (CFTC) in accordance with the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010.

Under the rules, these financial institutions are required to adopt and implement programs to detect and respond to indicators of possible identity theft. The SEC stated that the rules are a response to the growing threat of identity theft to U.S. citizens who invest, save, or borrow money.

The final rules will become effective 30 days after publication in the Federal Register, and the compliance date will be six months after the effective date.

Click here to access the adopting release.


Investment Advisers, Investment Companies, Regulatory