Data privacy and the security of sensitive customer data are emerging as major issues for financial service firms. New regulations governing sharing of customer data and data security go into effect June 1 of this year requiring many financial services companies to adopt policies designed to detect and react to breaches in customer data and identity theft. In a recent article in Law and Technology News, Satish M. Kini and Thomas S. Wyler, provide a helpful overview of what these new privacy regulations mean to to firms. Highlighting the FTC's Red Flags Rule, the SEC's Regulation S-AM and recent action In re Commonwealth Equity Services, as well as pending legislation in Congress on privacy, the article provides an excellent overview of the movement toward stricter controls, basic safeguards, and best practices in securing customer data.
The full text of Kini and Wyler's article is available at: http://www.law.com/jsp/lawtechnologynews/PubArticleFriendlyLTN.jsp?id=1202446085582