SERIES 66 TEST CANDIDATES SHOULD PAY ATTENTION TO SEC PRIVACY REGULATIONS AND REGULATION S-P

The SEC has rules regarding the requirement that registered investment advisory reps maintain confidentiality about the financial positions of their customers. This is called Regulation S-P.

NASAA'S Test Specifications and Content Outline for the Series 66 Exam includes required knowledge on Privacy Regulations in Section IV (H) (5). This means that a Series 66 candidate should expect to see questions on privacy requirements on the Series 66 Exam.

Bob Eder has detailed information about Regulation S-P in his Study for the Series 66 Exam. Here is a sample of Bob Eder's discussion on maintaining  privacy of financial information of customers:

"Changes in Privacy Policies                                    IV (H) (5)

If a financial services company changes or amends its privacy policy, it must send out revised privacy notices, or tell the customer about the changes in the company's next annual notice. Furthermore, if this change involves sharing confidential information about customers with an unaffiliated third party, a company may not in fact transfer any such information unless first: 

1.    the company has sent each customer a revised privacy policy, indicating that the company intends to share information with an unaffiliated third party; 

2.    the company has sent out a notice that a customer has the right to opt out; 

3.    the company gives the customer a reasonable opportunity, or time period, to opt out, meaning a minimum period of 30 days within which to respond and opt out, following the sending of a notice; 

4.    and the customer has not opted out."

Here is the link to NASAA's Content Outline and Test Specifications for the Series 66 exam. See Section IV (H) (5) on Privacy Requirements.

Study for the Series 66 Exam is available from Amazon in both paperback and Kindle e-book versions. Here is the link to Bob Eder's book on Amazon.

For questions about Bob Eder's Series 66 study manual, Study for the Series 66 Exam, or questions in general about the Series 66 exam, such as on Privacy Regulations, feel free to email Bob Eder at bobeder@bobeder.net.

Bob Eder received his Juris Doctor (J.D.) degree from the University of Utah, Quinney College of Law, in 2001. See Bob Eder's Author Page on Amazon.com.