Exam Alert: SEC requires financial institutions to implement identity theft programs

On April 10, 2013, the SEC announced that it and the CFTC were implementing rules to require broker-dealers, mutual funds, investment advisers, and certain other entities to adopt programs to prevent identity theft. Continue reading

On April 10, 2013, the SEC announced that it and the CFTC were implementing rules to require broker-dealers, mutual funds, investment advisers, and certain other entities to adopt programs to prevent identity theft.

 

The programs should be designed to identify relevant red flags, and to detect and respond to such red flags. The programs must also be updated periodically. Staff should receive adequate training. Financial institutions must exercise appropriate and effective oversight of service provider arrangements.

 

The rules will become effective 30 days after publication in the Federal Register. The compliance date for the rules will be six months after their effective date.

 

Source: SEC Release 2013-57: SEC Adopts Rules to Help Protect Investors from Identity Theft

 

This alert applies to Series 24, Series 26, Series 65, Series 66, and Series 99.

Exam Alert: SEC to nationalize exam program

According to the Wall Street Journal, the SEC is putting the finishing touches on a new uniform manual for its examiners. The WSJ states that the SEC expects Continue reading

According to the Wall Street Journal, the SEC is putting the finishing touches on a new uniform manual for its examiners.  The WSJ states that the SEC expects that the new manual will nationalize the agency’s examination program, allowing for uniform processes and procedures across all regional offices.  The SEC intends to distribute the manual to examiners in 30 to 60 days and to the public in 30 to 90 days (as of 2/8/11), according to the WSJ.

http://online.wsj.com/article/SB10001424052748704364004576132231587877342.html