SEC ANNOUNCES IMPORTANT CHANGES TO RULE S-P COVERING PRIVACY OF CUSTOMER FINANCIAL AND PERSONAL INFORMATION
The Series 66 Exam covers SEC Rules including Regulation S-P on the privacy of consumer financial information and the safeguarding of customers' personal information and data. NASAA indirectly lists Regulation S-P in its Series 66 Test Specifications in Section IV (H) (5) under Privacy and Data Protection. Recently the SEC has amended Regulation S-P "to address the expanded use of technology and corresponding risks that have emerged since the Commission originally adopted Regulation S-P in 2000." The amendments cover situations where computer hackers unlawfully view, copy or steal a firm's customer accounts records . Brokerage and advisory firms, including mutual fund firms, are required to detail steps in writing to be taken when a brokerage firm suffers such a break-in. Firms must also report such events to the SEC as soon as possible, but no later than 30 days of occurrence. Furthermore, firms must notify customers whose accounts are, or reasonably likely to ...